British Airways shares jumped 4%, or 8.7p, to 228p, by 11:30am after the carrier's price target was lifted by Citigroup and the Royal Bank of Scotland.
Citigroup said in a note to investors": "Our target price is raised by 12p (to 295p) based on 100% probability of its joint venture with American Airlines going ahead in our view (following regulatory approval 2 weeks ago) to give a total value of synergies of 25p per share."
British Airways is also working on a merger with Spain's Iberia. The enlarged group plans to dominate the North Atlantic traffic, through BA, as well as routes from Europe to South America, where Iberia has a strong presence.
