New York — Delta Airlines announced plans Monday to purchase an oil refinery outside of Philadelphia, a novel approach to reducing its fuel costs.

Delta is buying the Trainer refinery for $150 million, and intends to spend $100 million to convert the refinery's existing infrastructure in order to maximize jet fuel production, the company said in a statement. The site offers easy access to New York airports and Delta hubs La Guardia and JFK.

"Acquiring the Trainer refinery is an innovative approach to managing our largest expense," Delta CEO Richard Anderson said. "This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast."

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