Copying and distributing are prohibited without permission of the publisher.

Watermark

Oil Prices Ground Airline Debt

29 Mar 2007

Airline debt was down last week across the board as the price of oil shot up to a six-month high of $64 a barrel due to rising tensions in Iran and waning inventories in the U.S. Last Wednesday, Delta Air Lines' notes were off about a 1 1/2 points to around 55 and Northwest Airlines bonds dropped about 2 points to around 87, according to a dealer.

Airline debt was down last week across the board as the price of oil shot up to a six-month high of $64 a barrel due to rising tensions in Iran and waning inventories in the U.S. Last Wednesday, Delta Air Lines' notes were off about a 1 1/2 points to around 55 and Northwest Airlines bonds dropped about 2 points to around 87, according to a dealer.

Another dealer said there was activity in Delta's claims although it has plans to emerge from bankruptcy within the next month or two. Northwest's guarantee claims were trading around 80-82 and its non-guarantee claims were around 72-76 last Wednesday, he said. Calls to company spokesmen were not returned.

29 Mar 2007