Delta Air Lines’ Trainer Refinery to Resume Production in November

Delta Air Lines is expecting its Trainer refinery in Trainer, Pennsylvania, to restart production in mid-November after undergoing two months of maintenance work. This update was provided by Chief Financial Officer Dan Janki during a conference call discussing the company’s third-quarter financial results.

Progressing as Planned

According to Delta, the turnaround work at the Trainer refinery, which is operated by its Monroe Energy unit, has been progressing as planned. The company anticipates that the facility will be operational again in approximately one month. The refinery commenced major maintenance work around mid-September, as stated in a Securities and Exchange Commission filing.

Once-in-Five-Year Maintenance

Delta described the maintenance work at the Trainer refinery as a once-in-five-year bundle of heavy maintenance that requires approximately two months to complete. The company believes this extensive maintenance will ensure the refinery’s optimal performance.

Positive Effect on Fuel Prices

During the conference call, Delta reported an adjusted third-quarter fuel price of $2.78 per gallon, which includes a refinery benefit of 11 cents per gallon. This represents a 21% decrease compared to the same period last year. Analysts have noted that above-average refinery margins, fueled by high retail gasoline prices, are expected to positively impact earnings for refinery operators in the third quarter.

Future Outlook

Looking ahead, Delta expects the Trainer refinery to “roughly break even” in the fourth quarter. The airline acquired the refinery from ConocoPhillips in April 2021 for $150 million as a strategic move to hedge against volatile jet fuel prices.