Delta Refinery Deal Could See Atlantic Dominance

Delta Air Lines’ acquisition of an oil refinery in Trainer, Pa., could give it a fuel cost advantage of at least 20 cents a gallon over competitors on transatlantic services from New York and ultimately market dominance across the Atlantic. According to Philip Verleger, Jr., an economic consultant on energy and commodity markets and publisher of Petroleum Economics Monthly for more than 25 years, simply reducing the refining margin on jet fuel will provide much of these savings for Delta. This so-called “crack spread,” according to Verleger, currently stands at about 15 cents a gallon ...