With even fewer passengers booking flights in September because of the one-year anniversary of last year's terrorist attacks than Delta Air Lines had anticipated, the carrier Friday issued guidance on what it expected to lose during the third quarter. And the statement wasn't pretty.

        The nation's No. 3 carrier said it expected net losses of about $225 million, after the company already lost $186 million in the second quarter. Including special charges, especially $700 million to $800 million to adjust how it accounts and pays for pension funds, Delta said Friday that total third-quarter losses could exceed $350 million.

        In a filing to the Securities and Exchange Commission, and in a letter to stock analysts, Delta said it does not anticipate any increases in revenue for the quarter. The company will release third quarter earnings on Oct. 15.

        “As a result, we believe that total revenues for the September 2002 quarter will be approximately flat versus the September 2001 quarter,” Gail Grimmett, Delta's managing director for investor relations, said in a letter to investors and analysts. “We continue to work hard to manage through these times in a responsible manner.”

        The SEC temporarily suspended Delta's stock from trading at the opening of the market Friday, because the airline released its 8K filing with no accompanying press release.

        The agency has had a long-standing rule requiring the two to be released simultaneously, but had never enforced it against Delta until now.

        The suspension caused rumors of a potential merger or bankruptcy announcement, and caused the stock to plunge this morning, but Delta officials denied that there was anything more than the SEC rule enforcement behind the action, which lasted less than two hours.

        The company's stock closed at $8.69, down $2.81, and some analysts said the market was overreacting to Delta's announcement that it was shifting some debt to handle pension funds, as well as the confusion over the trading suspension.

        Jim Higgins, airline analyst with the Wall Street firm Credit Suisse First Boston, wrote in a research note that Delta proved that its cash flow was still stable.

        “We do not believe Delta's release is a big deal, and view the stock's weakness as an overreaction.” Mr. Higgins said in his letter.

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