International Airlines Group has raised its 2015 profit target, showing confidence in the growth of transatlantic travel and turnaround plans for its Spanish airlines, bucking the trend in a sector hit by weak European markets and high fuel prices.
IAG, which owns British Airways (BA) and Spain's Iberia and Vueling, yesterday raised its 2015 operating profit goal to €1.8 billion from €1.6 billion, citing savings from integrating budget carrier Vueling, which it took control of this year, improved margins at BA and a recovery at Iberia.
Analysts had on average pencilled in a 2015 operating profit of €1.63 billion.
IAG's optimism contrasts with other European airlines such as Lufthansa and Air France-KLM which have had to cut jobs and rein in growth plans. – (Reuters)