Delta has 50-50 chance of bankruptcy

NEW YORK, July 20 (UPI) -- New York-based financial services firm JP Morgan Tuesday gave Delta Air Lines a 50-50 chance of bankruptcy, Cincinnati's Business Courier said.

JP Morgan analyst Jamie Baker downgraded Atlanta-based Delta's rating from "neutral" to "overweight," and said Delta has a 50-50 chance of declaring bankruptcy. Baker had said previously that Delta had a 25 percent chance of going bankrupt.

Delta is currently negotiating with its pilots' union for pay cuts worth at least $850 million, the Business Courier said.

Baker said if the airline files for bankruptcy, the stock could fall near $1. Delta stocks closed Tuesday at $5.40 per share on the New York Stock Exchange, down more than 9 percent from Monday.