IAG targets £1bn profit by 2015

British Airways and Iberia owner IAG said it had increased its growth and cost savings targets and expected to make an operating profit of around 1.5bn euros (£1bn) in 2015.

Europe's second-biggest airline group by value behind Germany's Lufthansa (LHAG.DE) said it expected to achieve annual synergies of 450m euros in 2015, the fifth year following the merger of BA and Iberia, up from 400m euros previously.

It is also targeting structural profit improvements of 400m euros and organic growth of 150m euros.

IAG also said it planned to lift its capital expenditure to 1.6bn euros by 2015.

Earlier in November, IAG reported a drop in third- quarter profit, hit by higher fuel costs.