Savanthi Syth

"The move in jet fuel has been greater than the move in Brent... as some of the refiners are getting shut down. Delta does own a refinery... that should help them on the refining margin." The conflict in the Middle East is causing massive spikes in jet fuel prices, specifically blowing out refining margins. Because Delta owns its own refinery (Trainer), it is partially hedged against this specific refining margin spike, giving it a significant structural cost advantage over competing airlines that must buy jet fuel at elevated spot prices. LONG. Delta is uniquely positioned to weather the current jet fuel price shock better than its unhedged industry peers. A prolonged spike in base crude oil prices will still negatively impact Delta's bottom line, and passing higher fuel costs onto consumers via ticket hikes could destroy travel demand.