Delta begins operations at refinery

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Delta Air Lines has begun refining oil at its Trainer oil refinery in Pennsylvania.

The Atlanta-based SkyTeam carrier is on schedule to ship its first jet fuel by the end of the month, it says.

Paul Jacobson, chief financial officer of Delta, said that it would begin to use fuel from the plant during the fourth quarter with its financial results for the period reflecting the use, at the 2012 Dahlman Rose Global Transportation Conference in New York earlier this month.

The airline bought Trainer from Philips for $180 million in June and has spent about $100 million in upgrades.

The deal has sparked a significant amount of scepticism throughout the aviation and oil industries.

Delta's decision to buy Trainer is probably "somewhere between stupid and brilliant", said Jacobson acknowledging the scepticism.