Delta Air buys Pa. refinery from Conoco

By JOSHUA FREED,AP Airlines Writer Updated at 2012-04-30 20:37:31 +0000

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Delta Air Lines Inc. says it will buy a refinery near Philadelphia as part of an unprecedented deal that it hopes will cut its jet fuel bill.

Delta is buying the Trainer, Pa. refinery from Phillips 66, a refining company being spun off from ConocoPhillips. Delta says a subsidiary will pay $150 million, including $30 million in job-creation assistance it is getting from the state of Pennsylvania.

Delta estimates the deal will cut its fuel bill by $300 million a year. Fuel has become the airline industry's biggest expense over the past few years.

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