IAG lifts 2015 profit goal on BA growth and Iberia recovery

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)