Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJoseph Zeballos-RoigSun, September 20, 2026 at 11:45 AM GMT+2 4 min readChris Hondros / Getty ImagesDelta Airlines [NYSE: DAL] has developed a sturdy reputation in the airline business. Over a decade ago, the company jumped into the oil sector as a refiner.In 2012, Delta acquired an oil refinery just outside Philadelphia for $150 million from ConocoPhillips, the Texas-based oil giant. It was intended as a shield against fluctuating oil prices since Delta could start processing crude into diesel and jet fuel itself.Must ReadJeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being oneDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. compared Delta's move to "a rabbi buying a church" and described it as "counterintuitive."When an airline enters the oil businessDelta's maneuver was a classic example of vertical integration, or when a company controls multiple parts of its supply chain to boost efficiency and reduce costs. Depending on the year (and the price of crude), the refinery has appeared both prescient or a bottomless money pit.Analysts viewed it as an attempt to limit the so-called "crack spread," which is the difference between the price of crude and refined jet fuel. For airlines, jet fuel is often the second-largest operational expense behind labor.The century-old plant had been inactive for six months by the time Delta swooped in, and it needed $120 million in upfront investment to restart operations, according to Forbes. Over the years, Delta poured $1.6 billion to keep the plant up and running; it's operated by a subsidiary that sells jet fuel to Delta at market rates.The refinery has yielded rewards. When Russia invaded Ukraine in 2022, the event disrupted energy supplies and sharply pushed up jet fuel prices. The crack spread widened ever further. That year, Delta reported $785 million in savings due to its control of the Pennsylvania refinery.Other times, it's been a drag on Delta's earnings. When oil prices collapsed in early 2020 from the pandemic, the refinery lost over $114 million in the second quarter alone.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info