Aug 2 Reuters British Airways owner IAG39;s shares rose more than 7 on Friday, after the company39;s strong secondquarter performance and its move to scrap a proposed takeover of Spanish airline Air Europa.

IAG39;s results outshone rivals which have had a more challenging second quarter marred by rising costs and a slow down in socalled revenge travel demand where people rushed to take foreign trips just after the pandemic.

The company39;s decision to abandon the Air Europa deal, which faced complex competition issues, was seen as a positive step.

We had seen it difficult to envisage regulatory approval for this deal … and find this development unsurprising, said Neil Glynn, director of airline industry analyst AIR Control Tower.

IAG shares were up 7.5 at 1035 GMT, topping London39;s benchmark index in contrast to other airline shares which have struggled.

IAG Chief Executive Luis Gallego on Thursday said the Air Europa deal was no longer in shareholders39; interests after the European Commission said IAG39;s proposed concessions were not enough.

The European Commission in a statement said it took note of IAG39;s decision.

Our indepth analysis indicated that the merger would have negatively affected competition on a large number of domestic, shorthaul and longroutes within, to and from Spain on which the two airlines compete closely, EU antitrust chief Margrethe Vestager said

The remedies submitted did not fully address our competition concerns, she added….