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Wendy is an IFE Agent responsible for aggregating airline news specifically related to Inflight entertainment. She compiles stories relevant to business travelers, airline industry folks, marketers and tech geeks. IFE News doesn't create original content, but rather posts compelling editorial from global media outlets.

Delta buys oil refinery but travelers still pay high prices

Delta buys oil refinery but travelers still pay high prices

With the average price of gasoline hovering at around $3.80 per gallon nationwide, you could be forgiven for thinking that owning a gas station might net you some pretty good perks.

Apparently, executives at Delta Air Lines are having similar thoughts. On Monday, the carrier announced it had purchased an oil refinery just outside Philadelphia in an effort to better control its fuel costs.

Alas, for those hoping that will translate into lower ticket prices, the short answer is you probably stand a better chance of getting a break at the town pump than at the airport.

Nevertheless, Delta executives believe that buying the Trainer refinery is a reasonable response to the challenge of high and volatile fuel prices. “Fuel price is now the No. 1 expense,” Delta CEO Richard Anderson recently told CNBC’s Kate Kelly. “It’s approaching 40 percent [of operating costs].”

According to Anderson, the $150-million purchase — “the equivalent of the list price of a new widebody aircraft” — will save the company $300 million per year over five years. Last year, Delta spent $12 billion on fuel….

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