Originally Posted by
DALFA
It doesn't matter if the refinery posts a loss or a profit. Well, it does...but it's very minor.
The purpose of the refinery is to reduce crack spreads for jet fuel, which it has done. So if the crack spread is reduced by 0.03-0.04 per gallon and the refinery loses a few million dollars...Delta still comes out way ahead. Of course it also helps the other airlines but the bottom line is the reduction of the crack spread.
Yep, exactly. And even by that article's numbers, its still around $374 million in the black anyway. If that doesn't even include the savings the airline gets from cheaper fuel, then its off the charts. But even if that is priced in, that's still not a bad deal. Fuel is going back up anyway as the OPEC cartel desperately flails around trying to balance bleeding out their competition with avoiding kingdom crushing austerity.