Profit sharing is up 19% over last year so far. Non-fuel costs are supposed to be reduced in the next two quarters. I think February 14 will be pretty good.

 

Not saying its not true, but if it is that's a classic bubble. If your serious I'd short oil about Oct. 20th. I'm thinking its more related to carbon surcharges during the EU/brexit transition but I've been wrong before. More regulation diversity means more blends and more cost to produce.

 

Profit sharing % or the amount set aside? I don’t want to be into another 10 page discussion but we as pilots are getting a significantly smaller share of the pool this year. 19% more set aside means a smaller check on 14 Feb. We had this discussion in Feb with the effects of the change in the last quarter.
Keep in mind also the effects of the fuel cost increase are going to be a lot more in the 3rd and 4th quarter.

 

He is considering releasing oil from the Strategic Petroleum Reserve because the midterms are November 6. The SPR is supposed to be used for “strategic” reasons affecting the US. Not political reasons like more Dems might be win House seats because gas prices are high.

Not surprisingly, the White House, thinking they’re being clever, have Iranian oil sanctions kicking in November 4th. Oil speculators, also being clever people, plan ahead.

Not to mock, but I might add the OPEC likes high prices. OPEC’s mission statement: "coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry."

i.e. keep prices high

Surely we don’t have to debate this?

 

Please explain. I have heard our VPs of Flight Ops say exactly the opposite. Are they not being truthful. Just adding I have heard this multiple times in the last few years from them.

 

The refinery brought around a 45 million benefit the last qtr according to the press release. What it has brought that’s not totally accountable every qtr is a smaller and less volatile crack spread every day. While the smaller and less volatile crack spread helps all airlines it has certainly brought order to a market that had shown wild swings for years prior to the refinery opening.

 

It's actually the opposite of what you say. OPEC has been trying to devastate the US oil industry.

 

Read all the quarterly reports. We make money some quarters and lose money other quarters. Nothing close to repaying our investment and potential future liabilities. The extra jet A available in the NE lowered everyone’s price so we gained no real advantage there.
United and American both said they would watch our results closely before deciding to purchase a refinery. They don’t seem very interested at this point.

 

It was said many years ago when the refinery was bought that it wasn’t just going to benefit Delta but most others also. The main benefit was lowering and smoothing the crack spread which had been out of control. Trainer was to add stability to the jet fuel market. Which it has. It has also allowed Delta to partially eliminate that in our plan. It has done that while turning a profit.

I am a pilot. Not an airline exec. But even I can see that Trainer has been a success.

 

I don’t think there are other refineries for purchase. It’s not like the housing market. They are not out there for sale. As I recall Trainer was a steal and a one of a kind opportunity that was jumped on by Delta.