IAG hikes 2015 profit target by 12.5 per cent

On Friday, International Airline Group (IAG) raised its 2015 operating profit target by 12.5 per cent, or €1.8bn (£1.5bn). The British-Spanish multinational, which owns British Airways (BA) and Iberia, attributed the increased profit target to improved performance at BA and its Spanish based airline, Vueling. BA's 2015 operating profit target was raised from £1.1bn to £1.3bn. IAG is targeting organic growth of two to three per cent beyond 2015, excluding Vueling. (Release)

The increased profit target comes a week after the company reported an increased third quarter operating profit of €690m (£574.89m), up from €270m for the same period last year.

Iberia has undertaken several changes as part of its transformation plan and saw an improved operating profit of €74m (£62m).

Last week, the group's chief executive, Willie Walsh, said:

The airline must continue to implement its restructuring plan and reach agreement on productivity changes to bring about long term sustainable profits and growth.