IAG ups 2015 profit target to €1.8 billion

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British Airways and Iberia parent IAG has increased its operating target for 2015 from €1.6 billion ($2.16 billion) to €1.8 billion.

The airline group says it will achieve this through BA increasing its operating profit target by 2015 from £1.1 billion (£1.8 billion) to £1.3 billion on the back of improved yields, the impact of the performance of Vueling and the Iberia recovery plan.

IAG is now putting in place a business model that will allow British Airways and Iberia to sustain 2% to 3% growth per annum.

Enrique Dupuy chief financial officer of IAG says the group must transform its London and Madrid hub operations and has set a target of €650 million in group synergies by 2015.

The IAG financial chief says there were signs of a “quicker recovery” in the Spanish economy than analysts had conceded and a recovery in London and its environs which were good signs for BA and Iberia.