18-Nov-2013 6:50 AM

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