U.S.-based Delta Airlines will soon be the world's first air carrier to produce its own jet fuel.

Delta announced Monday it is buying a struggling oil refinery near Philadelphia from the Phillips 66 oil company for $150 million.

The refinery has been losing money and its owner had planned to shut it down, leading to thousands of job losses.

Delta chief Richard Anderson calls buying a refinery an innovative approach to managing the airline's largest expense.

Delta spent $12 billion on jet fuel last year, which was about 36 percent of its operating expenses.

Delta says making its own fuel will save it about $300 million a year