DAL · 10-Q · 2026Q2 · Full report
Refinery Segment Impact
DELTA AIR LINES, INC. · 2026-07-10 · Importance 62 · Surprise 50 · No source text
Monroe refinery typically produces ~200,000 barrels per day and supplies jet fuel to the airline while selling non-jet products to third parties; third-party refinery sales increased materially due to higher market prices and a shift from exchanges to sales. Third-party refinery sales rose $1.542 billion year-to-date, contributing to operating revenue and margins, and the refinery generated operating income of $351 million in the June 2026 quarter versus an operating loss of $10 million in the prior-year quarter. The profit increase was driven by higher industry pricing and refining margins but was partially offset by a temporary outage that halted production beginning mid-June 2026. Management adjusted presentation of Monroe hedge settlements and timing of recognition to better match inventory sales.
Key facts
- The refinery generated operating income of $351 million in the June 2026 quarter compared to an operating loss of $10 million in the June 2025 quarter. source
- Refinery sales to third parties increased $950 million in the three months ended June 30, 2026 compared to the June 2025 quarter. source
- Refinery revenue (third-party refinery sales) for the six months ended June 30, 2026: $3,745 million versus $2,203 million in prior period, increase of $1,542 million. source
- Refinery expense for the six months ended June 30, 2026: $3,745 million versus $2,203 million in prior period, increase of $1,542 million. source
- The Monroe refinery typically produces approximately 200,000 barrels of refined products per day. source
- Third party refinery sales increased in 2026 compared to the three and six months ended June 30, 2025 due to higher market prices for refined products and a shift in mix to more sales than exchanges as exchange agreements ended during second half of 2025. source
- Refinery operated by Monroe typically produces approximately 200,000 barrels of refined products per day. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +7.8% | Refinery revenue (third-party refinery sales) for the six months ended June 30, 2026: $3,745 million versus $2,203 million in prior… |
| operating_income | negative | realized | -7.8% | Refinery expense for the six months ended June 30, 2026: $3,745 million versus $2,203 million in prior period, increase of $1,542 million. |
| revenue | positive | realized | +4.8% | Refinery sales to third parties increased $950 million in the three months ended June 30, 2026 compared to the June 2025 quarter. |
| operating_income | positive | realized | +1.8% | The refinery generated operating income of $351 million in the June 2026 quarter compared to an operating loss of $10 million in the June… |