IAG has increased its profits forecast for 2015 as the company benefits from the purchase of Vueling and higher profits at British Airways.
The group said it had upgraded its target for operating profit next year from €1.6 billion to €1.8 billion, during a presentation to investors today (November 15).
As a comparison, IAG is expecting to make an operating profit of around €740 million, before exceptional items, in 2013.
BA is expected to be a major driver of these improved earnings with a new operating profit target of £1.3 billion in 2015 – up from the previous target of £1.1 billion – due to expected higher margins next year.
IAG said that it would benefit from the impact of Vueling’s integration, improved margins at BA and the continuation of Iberia’s “recovery plan”.
The group added that it was “heading for a business model that could sustain organic growth levels of 2-3 per cent (excluding Vueling) beyond 2015”.