IAG saw its share price climb more than 5% in Friday trading after giving a positive briefing to the City.
It told the financial markets that it expects to achieve operating profit of around €1.5 billion in 2015, higher than earlier forecasts.
It said the growth will be achieved through an increase from €400 million to €450 million in annual synergy targets, structural profit improvements of €400 million plus organic growth of €150 million.
Plans include the creation of Iberia Express (at least €100 million), and hub improvements at Madrid Barajas (at least €100 million).
It expects the transatlantic joint business with American Airlines to deliver at least €150 million.
The airline group, which includes British Airways and Iberia, has revealed a planned capital expenditure programme of €1.1 billion in 2011, €1.6 billion in 2012, €2.0 billion in 2013, €1.35 billion in 2014, €1.6 billion in 2015.
It aims to achieve cost efficiency gains from the introduction of new aircraft into the fleet to the tune of around €250 million.
Organic capacity growth rate is expected to be 2.5% per year until 2015.
But the airline also faces a EU emissions trading costs of €90 million in year one of the scheme at current carbon prices and, at todays’ fuel price, expects 14% growth in unit fuel costs.
The group is currently in the process of buying BMI from Lufthansa, subject to regulatory approval.
by Bev Fearis
