An analysis of Delta Air Lines' oil refinery acquisition

• Published in: Research in transportation economics Vol. 56; pp. 50 - 63
• Main Authors: Manuela Jr, Wilfred S., Rhoades, Dawna L., Curtis, Tamilla
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.08.2016
• Subjects: Airline financial performance; Fuel hedging; Vertical integration; Fuel hedging; Airline financial performance; L25; L93; C36; Vertical integration

Delta Air Lines acquired an oil refinery in April 2012 as a strategic move to hedge against higher fuel prices. Our paper analyzes the impact of the oil refinery acquisition, a backward integration strategy, on the airline's financial and operational performance, for the period Q1 2010 to Q2 20...