British Airways has confirmed that the final signature needed for a revenue sharing agreement with Iberia and American Airlines is now drying on the dotted line. Commercial cooperation on all transatlantic flights operated by the three carriers could begin as soon as next week. The new agreement means that a share of the ticket price on any transatlantic flight will go to the carrier which took the booking for that flight, regardless of which of the three airlines the passenger eventually travels with.

The joint agreement is for all flights across the Atlantic between the European Union, Norway and Switzerland and all destinations in the US, Canada and Mexico. British Airways said the revenue sharing would start in October, but is still to confirm an exact date.

Between them, BA, Iberia and American estimate their combined business across the Atlantic to be worth in the region of £4.4 billion annually. The new agreement will help Oneworld, the airline alliance all three carriers have membership of, better compete with rivals SkyTeam and Star alliance.

Both alliances have been operating as consortiums across the Atlantic for a number of years now. Although both have approval from the US Department of Transport, European approval is still in the examination stage.

The US Department of Transport gave its blessing to the Oneworld agreement in February this year and Brussels gave it the European go-ahead in July. In the same month, BA and Iberia were given EU permission to complete a separate, outright merger deal.