On the Call: Delta Air Lines CEO Richard Anderson

On the Call: Delta Air Lines CEO Anderson says the company is pleased with refinery purchase

Associated Press

Last year Delta Air Lines Inc. raised eyebrows in both the energy and airline industries when it bought a refinery near Philadelphia. The idea was to make as much of its own jet fuel as possible, cut out the refinery middleman — and cut its fuel bill.

Some might be wondering how that's working out after Superstorm Sandy slowed down refinery production and prompted a $63 million fourth-quarter loss at the refinery. Delta said it expects the refinery to turn a profit in the current quarter.

CEO Richard Anderson told analysts in a post-earnings conference call that, other than the storm, "everything has gone as planned."

QUESTION: And so you're still very satisfied with your business decision to buy a refinery?

ANSWER: More — actually, since we've actually closed on the refinery and spent a lot of time in the turnaround process, we've become more certain of how prudent that investment is for our company.

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