Reuters is reporting that Delta Air Lines is flooding the New York market with jet fuel from its refinery. The news service refers to a company memo written by Jeff Warmann, the head of Delta’s Monroe Energy subsidiary, which claims the company is sacrificing refining profits in order to lower the carrier’s fuel costs.
“Normally with such low product prices, a merchant refiner would shift yields and production to other products. We plan to continue to produce jet fuel and pump it into the New York market, pressuring the price of jet fuel to even lower levels," Warmann wrote. "This negatively impacts our refinery economics, but greatly helps reduce Delta’s fuel cost.”