Will Delta's Latest Move Result In Cheaper Airline Tickets?
By David Madden
PHILADELPHIA (CBS) – This week's announcement that a division of Delta Airlines would buy the ConocoPhillips refinery in Trainer, Delaware County might have stunned a few people.
The company is hoping to get control of escalating jet fuel costs. Now, what does that mean for airline passengers?
Delta President Ed Bastian hopes to have the refinery back up and running by Labor Day (see related story). The move is certainly good for workers and the local economy.
But when asked if the price of an airline ticket might go down, he highlighted how he expects this plan would help Delta's bottom line.
"This could be several hundred million dollars of added cost reduction and the lower that we're able to keep our cost…the better we're able to pass that along to the consumers."
But he made no commitment on that front. Plans are to refine some jet fuel here and trade other refined product with BP and Phillips 66, to give Delta over 75% of the fuel it needs for domestic flights.
