Shares in Japan Airlines surged 31 percent Monday after the Japanese government came up with additional financing for the troubled carrier. Separately, Japan Airlines and alliance partner American Airlines denied local media reports that said JAL had chosen Delta as its new partner.

Japanese transport minister Seiji Maehara told reporters Sunday the state-owned Development Bank of Japan will double its credit line for Japan Airlines Corp. to 200 billion yen ($2.2 billion). That should be enough to keep the airline afloat while the government works out details of a bailout for the cash-strapped carrier, government officials said.

Japan Airlines has suffered amid the global slowdown, competition from rival All Nippon Airways and a spate of safety lapses that tarnished its image. It is weighing cash offers from Delta Air Lines and American Airlines for partnerships in global airline alliances. Shares in the airline have been declining recently as speculation of imminent bankruptcy grew. They finished at a record low Dec. 30, the final day of trading last year.

Japan Airlines shares closed Monday at 88 yen, up 21 yen. Delta has been trying to lure Japan Airlines Corp. away from an alliance with American Airlines and into the SkyTeam alliance. An alliance with JAL is seen as a way to strengthen routes and business in Asia.

Delta and its SkyTeam partners have offered $1 billion to JAL. American has countered with a $1.1 billion offer to JAL to remain its partner. Executives from both Delta and American have suggested they might boost their financial offers.

Delta has expressed confidence that if it forms an alliance with Japan Airlines the tie-up will get clearance from regulators. American has repeatedly challenged that assertion. The Yomiuri reported Monday that JAL and other officials tackling the restructuring had decided on Delta over American. American Airlines called such reports "inaccurate."

"American Airlines at present continues to negotiate with Japan Airlines. American Airlines remains convinced, as it has been until now, that for Japan and the Japanese people, oneworld and American Airlines are the best partners for Japan Airlines," it said in a statement. JAL spokesman Kojiro Waki also denied the report, and said the company was still considering both offers. It was unclear when a decision would be announced, he said.