IAG lifts 2015 guidance on BA strength, Iberia recovery

15th Nov 2013 11:38

International Consolidated Airlines Group, otherwise known as IAG, lifted its profit guidance for 2015, helped by improving margins at British Airways and the ongoing recovery of Spanish airline Iberia.The firm is now targeting a €1.8bn operating profit in 2015, up 12.5% from its previous €1.6bn forecast. The company said that the positive impact from the integration of Spanish carrier Vueling, acquired earlier this year, was also a factor behind the more positive outlook.According to Reuters, consensus forecasts prior to Friday's statement were looking for an operating profit of €1.63bn in 2015.Looking past 2015, IAG said it is wants to sustain organic growth levels at 2-3% excluding Vueling, assuming capital expenditure of €2-2.2bn a year and "market-level" returns for shareholders.The news will be delivered to shareholders at the firm's Capital Market Day on Friday.Despite the upgrade, the share price was down 1.42% at 367.7p by midday on Friday, though it had erased some of its earlier losses. Still, the stock has risen by nearly 100% so far this year.BC