March 4 Delta Air Lines Inc said it
expects a profit of $75 million to $100 million in the second
quarter from its Trainer, Pennsylvania, refinery, which it
expects to be up and running at full capacity this week.
Delta President Edward Bastian told a JPMorgan conference
that was carried over the Internet that the refinery operated at
75 percent of its capacity for most of the first quarter because
of operational issues. "Yet we still expect to break even on the
facility in the (first) quarter," Bastian said on Monday.
Had the facility been running at full capacity in the first
quarter, Bastian said Trainer would have likely produced a
profit of $60 million.
"There's evidence here that we're going to make this work
for us; but like anything that's big and new and different, it's
taken us a little bit longer to turn on than we thought,"
Delta bought the refinery last year from Phillips 66
in a bid to gain more control over fuel costs. It said at the
time it expected to save about $300 million annually off its
yearly fuel bill of $12 billion.
Bastian also said Delta was active in making arrangements to
source Bakken crude for the refinery and was working with a
number of parties to deliver crude shipments by rail this year.