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Saturday 13 June 1998 23:02 BST
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British Airways shares rose 3.86 per cent last week as a number of brokers recommended purchases of the stock. Iberia Airlines, the Spanish airline, announced that the two companies are close to signing a commercial agreement to prepare the ground for BA to buy a stake in Iberia. There is also growing optimism that BA's planned merger with American Airlines will go through. There were signs of buoyant demand for airline services in Europe. BAA said passenger travel at its seven U.K. airports rose 7.1 per cent to 9.5 million in May from last year. European scheduled travel rose 8.7 per cent as low-fare carriers like Virgin and Ryanair added new services.

Copyright: IOS & Bloomberg

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