Delta Air Lines warns of substantial losses for rest of year

Delta Air Lines Inc. warned Tuesday it will record a substantial loss for the final nine months of the year and it will need to file for bankruptcy if its cash reserves fall too low or some of its lenders demand immediate payment of its debts.

Shares of the third-largest U.S. airline sank more than seven per cent in early trading. Delta said in a Securities and Exchange Commission filing that it continues to face significant challenges due to historically high fuel prices and low ticket fares