Delta Rises on Fuel Cost Reduction Efforts

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By Trey Thoelcke Published
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This morning’s disappointing employment numbers from the Labor Department haven’t stopped Delta Air Lines Inc. (NYSE: DAL) investors from pushing shares 3% higher in morning trading to nearly $9.50 per share. The 52-week range is $6.64 to $12.25.

Delta said Thursday it expects a “solidly profitable” third quarter even as rising fuel prices pressure margins. As a means to keep its fuel costs low, Delta will move further into the oil refinery business. While other airlines have not followed into the business, the play could give Delta an edge if what it pays for jet fuel drops considerably because it has its own source. According to the Washington Post:

Delta Air Lines is looking into buying cheaper North Dakota crude oil to feed its new refinery near Philadelphia, instead of the more expensive overseas crude that has fed the refinery in the past.

Delta bought the idled refinery at Trainer, Pa., in June.

Rising fuel costs cut deep into the Atlanta-based carrier’s second-quarter profit. Delta reported that its net income fell 57.6% from the year ago quarter to $198 million.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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