Delta Air Lines plans to manage the volatile cost of jet fuel by getting into the oil refining business, an airline industry first. On April 30 the carrier said its wholly owned Monroe Energy subsidiary will acquire a refinery complex southwest of Philadelphia from Houston-based Phillips 66 for $180 million.
BP’s oil refinery in Cherry Point, Wash.–which had been closed since February when a critical unit was damaged by fire–is expected to resume production this month after completion of repairs and annual maintenance. The refinery, the third largest on the West Coast, produces more than 200,000 barrels of gasoline and jet fuel a day and supplies the bulk of jet fuel for airports from Seattle to Vancouver, British Columbia. According to industry data provider Argus, the shortfall did not result in any dramatic jet fuel price spikes in the region.