April 16, 2016 |
After seven consecutive quarters of profitability, Delta Air Lines' refinery in Trainer, Delaware County, posted a $28 million loss in the first quarter of this year. Delta did not detail on a conference call with investors Thursday why the refinery lost money, after reporting an $8 million profit in the last three months of 2015 and a $106 million profit in the third quarter last year. Oil analyst Ben Brockwell at the Oil Price Information Service, who follows the aviation industry, said Trainer went "from black to red" for a couple of reasons: Higher costs for production ingredients and lower returns on the gasoline and diesel products the refinery produces and trades in exchange for jet fuel.
October 16, 2015 |
Delta Air Lines said Wednesday that its refinery in Trainer, Delaware County, posted a $106 million profit in the third quarter, compared with $19 million a year ago. "Our total fuel expense declined by over $1 billion in the quarter as lower market fuel prices more than offset higher consumption," chief financial officer Paul Jacobson said in a conference call on the company's earnings. Lower crude-oil costs and increased production helped boost the refinery's profit, Jacobson said.
January 29, 2015 |
American Airlines and merger partner US Airways reported better-than-expected fourth-quarter earnings Tuesday, and the company expects to save $5 billion this year in lower fuel costs. Philadelphia's largest carrier does not buy expensive fuel hedges to protect against swings in oil prices. American pays market prices, and during the recent sharp drop in oil, the airline has cashed in - saving 17 percent on jet fuel in the latest quarter. Despite record profits, a new $2 billion stock buyback program announced Tuesday, and a 10-cents-per-share quarterly dividend, American's shares fell 5 percent after the company said a key revenue measure would fall in the first quarter.
January 4, 2015 |
American Airlines and merger partner US Airways could enjoy more than $2.5 billion in "tailwinds" in 2015 because Philadelphia's dominant airline does not hedge its jet-fuel costs and does not have profit-sharing with employees, a Wall Street analyst said Friday. American is one of the few major airlines that does not buy hedges, which are futures contracts that lock in fuel prices in advance. Declining oil prices should be worth at least $1.3 billion to American, airline analyst Hunter Keay of Wolfe Research L.L.C.
December 13, 2014 |
Airline stocks soared Thursday after Delta Air Lines said the sharp drop in oil prices would translate into a $1.7 billion savings in fuel costs next year. Delta said at an investor conference in New York that its Trainer refinery in Delaware County would produce a $75 million profit in the current quarter, helping to offset losses on the airline's fuel-hedge contracts. Delta buys some of its fuel in advance, to hedge against higher costs. But when fuel prices dramatically decline, the airline is locked in and takes a hedge loss.
December 12, 2014 |
Airlines are enjoying record profits as oil prices drop and the global economy improves. So far, though, airlines have not passed on their profits to passengers in the form of lower airfares. But that may change. The fall in fuel prices and upturn in the economy could benefit consumers with cheaper travel, the International Air Transport Association (IATA) in Geneva said Wednesday. The trade group for the world's airlines predicted the average fare could drop 5.1 percent in 2015, excluding taxes and surcharges.
October 18, 2014 |
Delta Air Lines said Thursday that its Trainer oil refinery in Delaware County produced a $19 million profit in the third quarter, and is expected to have a $20 million profit in the current fourth quarter. Delta, the first U.S. airline to report earnings, had Thanksgiving revenues up by 8 percent, and Christmas and New Year's bookings "look solid," company president Edward Bastian reported on a conference call. Management said it has seen no change in booking trends due to the Ebola outbreak in West Africa.
July 25, 2014 |
Delta Air Lines said Wednesday that its Trainer oil refinery in Delaware County produced a $13 million profit in the second quarter. Delta, the first U.S. airline to report earnings, posted a second-quarter profit of $889 million, or $1.04 a share, that beat analysts' estimates, driven by strong passenger demand and higher revenue from corporate contracts. Revenue rose 9.4 percent to $10.6 billion. "We will post even better results in the third quarter, with a forecast operating margin of 15 percent to 17 percent," Delta chief executive officer Richard Anderson said on a conference call.
April 25, 2014 |
Delta Air Lines, which bought the former ConocoPhillips refinery in Trainer, Delaware County, to secure a steady source of discounted jet fuel, said Wednesday the refinery lost $41 million in the first quarter but is expected to be profitable in the current June quarter. Delta said one major crude unit at the refinery was shut down for scheduled modifications, which decreased production. To bring Trainer to profitability in 2014, Delta is making infrastructure changes to increase refined production, and boost jet and diesel production to roughly 50 percent of the refinery's total output, Delta chief financial officer Paul Jacobson said during a conference call.
January 23, 2014 |
Delta Air Lines said Tuesday that its Trainer oil refinery in Delaware County would have a "small loss" in the current first quarter, after posting a loss of $46 million in the three months ended Dec. 31 and a $116 million loss for 2013. Delta executives said on a conference call that the 180,000-barrel-a-day refinery, operated by subsidiary Monroe Energy L.L.C., would "see a modest profit" for 2014, said chief financial officer Paul Jacobson. "We expect to see only a modest loss for the Trainer refinery in the March quarter, despite the pull-down of one of the main units for modifications," Jacobson told investors.