U.S.-based Delta Airlines will soon be the world’s first air carrier to produce its own jet fuel.
Delta announced Monday it is buying a struggling oil refinery near Philadelphia from the Phillips 66 oil company for $150 million. The airline flies to Costa Rica.
The refinery has been losing money, and its owner had planned to shut it down, leading to thousands of job losses.
Delta chief Richard Anderson calls buying a refinery an innovative approach to managing the airline’s largest expense.
Delta spent $12 billion on jet fuel last year, which was about 36 percent of its operating expenses.
Delta says making its own fuel will save it about $300 million a year.