IAG increases 2015 profit target on British Airways growth, Iberia recovery

International Airlines Group (IAG), at its Capital Markets Day, updated (15-Nov-2013) the market with the following information:

• IAG is targeting a EUR1.8 billion operating profit in 2015, up from EUR1.6 billion (a 12.5% profit target increase) through:
• • Impact of Vueling integration and performance;
  • Improved margins in British Airways increasing the 2015 operating profit target from GBP1.1 billion to GBP1.3 billion;
  • Iberia recovery plan on track with improvement expected;
  • Additional contribution coming from British Airways and Vueling growth;
• Aiming for a level of EPS ≥ EUR0.54 (RoIC ≥ 12%);
• Keeping 2015 leverage at around 55% (pre IAS19);
• Heading for a business model that could sustain organic growth levels of 2-3% (excluding Vueling) beyond 2015;
• • Assuming capex of EUR2.0 to EUR2.2 billion p/a;
  • Providing market level returns for our shareholders. [more - original PR]