Delta Air Expects ‘Substantial’ Losses

Delta Air Lines Inc. said it expects to have “substantial” losses this quarter and the first quarter because of lower airline ticket sales and fares after the Sept. 11 attacks.

Delta said in a filing with the Securities and Exchange Commission that while passenger traffic is increasing slowly, revenue isn’t keeping pace, partly because of lower fares.

Between Sept. 11 and year’s end, the Atlanta-based carrier said it expects losses of $690 million, the same amount granted to the carrier under a federal rescue package.

Separately, in a speech before an industry group, Delta Chief Executive Leo Mullin urged the government to use the loan program to require minimum capital reserves for disbursing the guarantees and to promote the acquisition of weaker carriers.

Delta shares rose $1.29 to $25.97 on the NYSE.