Shares in British Airways (BA) have risen after news of an agreement over the company's pension deficit.
BA's pension deficit currently stands at £2.1 billion. The airline hopes to wipe these out by making a one off-contribution of £800 million this year and imposing annual company contributions of £280 million for the next ten years, reducing the deficit by half to £900 million.
Talks on Friday saw a deal agreed between BA and the British Airways Forum, which represents the four main unions, following weeks of discussions.
Early morning trading saw shares in the airline rise up to 3.3 per cent before settling up 1.6 per cent.
Regarding the talks, chief executive of BA, Willie Walsh, said: "This is great news. Together with the trustees and staff, we have found a shared solution that helps secure the pensions of our 33,500 members and removes a major blocker to future investment in BA."
More details about the agreed pension deal are expected to be released by BA today following discussions with their employees.
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