Delta Airlines (DAL) will Hog Jet-Fuel from its New Refinery
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Price: $92.75 --0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +12.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +12.7%
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Delta Airlines (NYSE: DAL), the second-largest airline in the United States, recently made an unprecedented move in an effort to keep its fuel costs down.
Delta's subsidiary, Monroe Energy, purchased a refinery in Pennsylvania to produce jet-fuel. Yesterday, Delta announced that it will not be selling jet fuel from the refinery on the open market. Instead, it plans to use output for its own operations.
"We will produce and sell the jet fuel to ourselves," said Eric Torbenson, a spokesman for the airline.
Torbenson's comments trump reports in the media that suggest Delta would be selling jet fuel on the open market. In fact, Monroe Energy is legally prohibited from selling jet fuel on the open market, according to Torbenson. Delta's refinery purchase is meant to save money for the airline, and trimming one cent off the cost of jet fuel will translate into $40 million annually for the airline.
Delta's subsidiary, Monroe Energy, purchased a refinery in Pennsylvania to produce jet-fuel. Yesterday, Delta announced that it will not be selling jet fuel from the refinery on the open market. Instead, it plans to use output for its own operations.
"We will produce and sell the jet fuel to ourselves," said Eric Torbenson, a spokesman for the airline.
Torbenson's comments trump reports in the media that suggest Delta would be selling jet fuel on the open market. In fact, Monroe Energy is legally prohibited from selling jet fuel on the open market, according to Torbenson. Delta's refinery purchase is meant to save money for the airline, and trimming one cent off the cost of jet fuel will translate into $40 million annually for the airline.
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