Delta Moves to Control Fuel Costs, Creates V.P. Position for Fuel Optimization
Delta Air Lines said it is taking additional steps to control its fuel costs. Not surprisingly, Delta’s fuel program is its number one operating expense.
Last year, Delta announced the purchase of a fuel refinery in Trainer, Pennsylvania. On Friday, the airline announced it was creating the position of senior vice president – fuel optimization.
Delta named Graeme Burnett to the new position effective August 1, 2013. In the new role, Burnett will oversee all of the airline’s fuel programs. A main thrust of his position will be to leverage Delta’s Monroe Energy subsidiary, which owns the refinery.
Burnett will also serve as the chairman of the Monroe Energy board of directors.
Fuel comprises roughly 25% to 40% of an airline’s costs and soaring prices in the past few years have significantly cut into industry profits, leading to higher fares and reductions in service.
(Photo: Accura Media Group)