(DAL) Will Oil Refineries Take Flight in 2014?

Airline stocks have been flying high in 2014 after notching up robust gains in 2013. Year-to-date the Dow Jones U.S. Airline Index (^DJUSAR) is higher by 14% after returning 85% in 2013. The strong performance comes despite rising fuel costs, which can make up approximately 30% of an airline’s operating cost. Many airlines hedge their fuel costs by taking counter positions in the oil futures market, which help offset any rise in jet fuel prices. Delta Air Lines Inc. (NYSE: DAL) has gone a step further and purchased a refinery that supplies its aircrafts directly with jet fuel. But has this nontraditional approach to decrease volatile fuel prices paid off? More importantly, will it pay out for you? Delta’s Hedging Alternative In 2012, Delta purchased the Trainer refinery from ConocoPhillips […]