Delta seeks more debt for equity swaps, speculation hiking fuel costs says CFO

By Ted A. Knutson

Washington, May 13 - Delta Air Lines, Inc. is seeking more opportunities to swap debt for equity, company executive vice president and chief financial officer Michael Palumbo told the Bear Stearns 2005 Global Transportation Conference.

Palumbo refused to say what the minimum amount of debt Delta would be comfortable exchanging. However, he noted the Atlanta-based carrier recently did a swap for as low as $10 million in debt.

Meanwhile the CFO blamed speculators for much of the recent increase in fuel prices.

Any historical analysis of supply and demand shows oil should be at $40 to $45 a barrel rather than $50 to $60 a barrel, Palumbo said.

He added that Delta has made its long-range business plan based on $40 to $45 oil.

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