Delta’s oil refinery sinks to loss in H1 2016
Delta Air Lines executives said they are not concerned by the money-losing first-half 2016 performance of the company’s Trainer, Pennsylvania oil refinery, noting that the facility is part of Delta’s overall fuel strategy and is not judged solely by profitability. The facility, which Delta bought in 2012, incurred a US$38m operating loss for the first 6 months of 2016, reversed from $176m in operating income in the 2015 first half. The refinery was profitable in both 2014 and 2015. CFO Paul Jacobson said that a narrow crack spread—the difference between crude oil prices and the actual price of jet fuel—hurt the refinery but helped Delta overall. “The lower crack spread environment that exists for the entire refining complex is a tremendous benefit to the airline,” he explained. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-07-20/sky/delta2019s-oil-refinery-sinks-to-loss-in-h1-2016
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Delta’s oil refinery sinks to loss in H1 2016
Delta Air Lines executives said they are not concerned by the money-losing first-half 2016 performance of the company’s Trainer, Pennsylvania oil refinery, noting that the facility is part of Delta’s overall fuel strategy and is not judged solely by profitability. The facility, which Delta bought in 2012, incurred a US$38m operating loss for the first 6 months of 2016, reversed from $176m in operating income in the 2015 first half. The refinery was profitable in both 2014 and 2015. CFO Paul Jacobson said that a narrow crack spread—the difference between crude oil prices and the actual price of jet fuel—hurt the refinery but helped Delta overall. “The lower crack spread environment that exists for the entire refining complex is a tremendous benefit to the airline,” he explained. <br/>
