** Shares in Air France-KLM AIRF.PA are up 6.4% after J.P.Morgan placed the European airline on its positive catalyst watch ahead of Q2

** The brokerage places the group on its watch for shares offering the best short-term risk-return ratio, expecting it to beat consensus estimates as lower spot and forward jet fuel prices are set to boost margins

** The broker says strong long-haul pricing trends can continue to be supported in upcoming quarters by robust premium demand and constrained market-level capacity

** Lower disruption expenses from early January and the annualisation of tariff increases at the Amsterdam airport will further improve operational cost execution excluding fuel

** JPM raises its PT by 6% to €16 and notes the airline presents the "best opportunity to beat consensus numbers" for the quarter among European flag carriers

** The stock is at the top of the SBF 120 index .SBF120