NEW YORK (CNN/Money) - Delta Air Lines will ask its pilots for more than $1 billion a year in concessions when talks resume in the next few weeks between the No. 3 U.S. carrier and its pilots' union, a newspaper reported Tuesday.

The cuts, up sharply from the more than $800 million sought earlier in the year, would reduce pilot labor costs at Delta by nearly half, USA Today reported, citing a source close to management.

The airline, which is seeking to cut $2.5 billion a year in other expenses by 2006, says it could land in bankruptcy court if it can't work out a deal with its pilots, the newspaper reported.

According to USA Today, both sides are likely watching moves at No. 2 United Airlines to see how sharply pilots' wages will be cut there, and will use that amount as a benchmark for negotiations.