Delta’s Refinery Helped the Airline Trim Fuel Costs in the Second Quarter
Are there any more refineries for sale? Given Delta’s seeming success in refinery ownership, there may be a few airlines looking to buy one.
Delta Air Lines reported a quarterly profit on Wednesday against a year-earlier loss as fuel costs fell and it held down other expenses.
Net income was $685 million, or 80 cents a share in the second quarter, compared with a loss of $168 million, or 20 cents a share, a year earlier.
There were charges of $159 million in the quarter tied to fuel-hedge contracts and Delta’s aircraft restructuring.
Quarterly revenue fell $25 million to $9.71 billion. While passenger revenue rose about 1 percent, cargo revenue was down 11 percent.
Operating costs dropped 8 percent, with fuel expenses down 21 percent in the quarter. Delta said its purchase of a Pennsylvania refinery last year was helping it save on fuel costs.