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.