{"id":29505,"date":"2012-05-07T10:29:49","date_gmt":"2012-05-07T14:29:49","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/05\/is-delta-nyse-dal-about-to-revolutionize-the-airline-industry\/"},"modified":"2012-05-07T10:29:49","modified_gmt":"2012-05-07T14:29:49","slug":"is-delta-nyse-dal-about-to-revolutionize-the-airline-industry","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/05\/07\/is-delta-nyse-dal-about-to-revolutionize-the-airline-industry\/","title":{"rendered":"Is Delta (NYSE: DAL) About to Revolutionize the Airline Industry?"},"content":{"rendered":"<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-29198\" title=\"Is Delta (NYSE: DAL) About to Revolutionize the Airline Industry?\" src=\"http:\/\/www.investmentu.com\/wp-content\/uploads\/2012\/05\/delta-dal-airline-industry.jpg\" alt=\"Is Delta (NYSE: DAL) About to Revolutionize the Airline Industry?\" width=\"220\" height=\"220\" \/><\/p>\n<p>Delta Airlines (NYSE: DAL) will soon become the first airline ever to provide itself with its own domestic fuel.<\/p>\n<\/div>\n<p>If all goes according to plan, by the end of June, <strong>Delta Airlines<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=DAL\" target=\"_blank\">DAL<\/a>)&#8230;<\/p>\n<ul>\n<li>&#8230; will start saving $300 million a year on fuel costs.<\/li>\n<li>&#8230; will add 5,000 new jobs to its payroll.<\/li>\n<li>&#8230; will see its share price steadily rising for the foreseeable future.<\/li>\n<\/ul>\n<p>How does it expect to do all of this?<\/p>\n<p>By being the <em>first airline ever<\/em> to provide itself with its own domestic fuel. Let me explain&#8230;<\/p>\n<h2><strong>Delta\u2019s Bold Move into Oil Refinement<\/strong><\/h2>\n<p>Last year, domestic prices for airfare hit an all-time record high according to the U.S. Department of Transportation.<\/p>\n<p>The No. 1 reason for this is fuel cost. For Delta, nearly 40% of its revenue went to keeping its planes fueled.<\/p>\n<p>And so far this year, these costs only continue to rise.<\/p>\n<p>That\u2019s why, earlier this week, Delta agreed to pay <strong>ConocoPhillips<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=COP\" target=\"_blank\">COP<\/a>) $150 million for an oil refinery that was otherwise going to close in May in Trainer, Pennsylvania.<\/p>\n<p>The refinery is set to process 185,000 bpd of crude oil, and Delta expects it\u2019ll cover 80% of its fuel costs in the United States beginning in 2013.<\/p>\n<p>Even Pennsylvania contributed an additional $30 million because it will save the jobs of 5,000 workers currently employed at the refinery.<\/p>\n<p>It\u2019s undoubtedly a risky move. Some are even calling Delta crazy. After all, the oil refining business can be just as volatile at times as <a title=\"Investing in This Industry\u2019s Downside is A No-Brainer\" href=\"http:\/\/www.investmentu.com\/2010\/January\/the-airline-industry.html\" target=\"_blank\">the airline industry<\/a>.<\/p>\n<p>But others, myself included, see it as a potential game-changer&#8230;<\/p>\n<h2><strong>The Road Ahead<\/strong><\/h2>\n<p>As MSNBC explains, \u201cFor one thing, the refinery is located in one the carrier\u2019s most important markets and will be able to provide a steady fuel supply to the company\u2019s operations at JFK, LaGuardia and other East Coast airports.<\/p>\n<p>For another, ConocoPhillips, the refinery\u2019s current owner, was in the process of idling the plant and reportedly \u201ceager to sell.\u201d<\/p>\n<p>In other words, not only is the refinery in a key locale, Delta also purchased the facility at a very steep discount.<\/p>\n<p>Delta expects an additional $100 million into the plant will turn it into a top-notch jet fuel producing facility by next year.<\/p>\n<p>And in order to make sure everything stays on task, Delta hired 25-year refinery veteran Jeffrey Warmann to manage the refinery\u2019s operations.<\/p>\n<p>In fact, prior to joining forces with Delta, Jeffrey was a refinery manager for <strong>Murphy Oil Corp<\/strong>. (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=MUR\" target=\"_blank\">MUR<\/a>). So if anyone\u2019s going to get the job done, it\u2019s going to be this guy.<\/p>\n<p>How do investors feel about the deal?<\/p>\n<h2><strong>Delta\u2019s Shares Are on the Rise<\/strong><\/h2>\n<p>Over the past few weeks, Delta\u2019s stock price climbed 20%. You can bet if Delta\u2019s oil refinery ends up being a big money saver, as well, shares will likely soar even higher.<\/p>\n<p>And if other companies follow suit, it could end up being a home run for Delta\u2019s shareholders. The bottom line: This is certainly a development worth keeping your eye on. Keep watching.<\/p>\n<p>Good Investing,<\/p>\n<p>Mike Kapsch<\/p>\n<div>\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=pqUHft68wx8:8SBrA2LLwps:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=pqUHft68wx8:8SBrA2LLwps:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=pqUHft68wx8:8SBrA2LLwps:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=pqUHft68wx8:8SBrA2LLwps:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=pqUHft68wx8:8SBrA2LLwps:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=pqUHft68wx8:8SBrA2LLwps:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=pqUHft68wx8:8SBrA2LLwps:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=pqUHft68wx8:8SBrA2LLwps:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/InvestmentU\/~4\/pqUHft68wx8\" height=\"1\" width=\"1\" \/><\/p>\n<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article by Investment U Delta Airlines (NYSE: DAL) will soon become the first airline ever to provide itself with its own domestic fuel. If all goes according to plan, by the end of June, Delta Airlines (NYSE: DAL)&#8230; &#8230; will start saving $300 million a year on fuel costs. &#8230; will add 5,000 new jobs &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2012\/05\/07\/is-delta-nyse-dal-about-to-revolutionize-the-airline-industry\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Is Delta (NYSE: DAL) About to Revolutionize the Airline Industry?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-29505","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=29505"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29505\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=29505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=29505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=29505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}