JP Morgan Upgrades Delta Air Lines

Analyst Jamie Baker sees reduced probability of the carrier's pursuing bankruptcy

JP Morgan upgraded Delta Air Lines (DAL ) to neutral from underperform.

On Oct. 25, the company entered a $600 million commitment letter with American Express Travel Related Services, a unit of American Express. Analyst Jamie Baker says he upgraded on presumed near-term upside, associated with bankruptcy-sidestep and attendant short squeeze. He says the American Express financing will likely dissuade Delta's board from pursuing bankruptcy, for now. He thinks there is a 35% (reduced from 85%) probability Delta will file .

Baker doesn't believe the company is out of the woods, though the board is likely to pray for the best. He notes the adjusted debt burden is still a staggering $21 billion and apparently moving higher.