IAG to make operating profit of €1.5bn in 2015
International Consolidated Airlines (IAG) rose strongly on Friday after saying that it expects to make €1.5bn in operating profits in 2015, significantly higher than €6m achieved in 2010.
International Consolidated Airlines (IAG) rose strongly on Friday after saying that it expects to make €1.5bn in operating profits in 2015, significantly higher than €6m achieved in 2010.
In its Capital Markets Day, the firm will reveal its target which it expects to achieve through an increase from €400m to €450m in synergy targets (from the merger of British Airways and Spain's Iberia) from year five, €400m of structural profit improvements and €150m in organic growth.
Iberia Express, the group's recently launched short- and medium-haul network, as well as hub improvements at Madrid's Barajas airport are expected to create a "financial benefit" of at least €100m each.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Furthermore, capacity is estimated to grow at an organic rate of 2.5% oer annum and introducing new aircraft into the fleet is expected to save the firm €250m. The "optimisation" of the transatlantic joint business with American Airlines will deliver at least €150m (from a 2010 base).
Capital expenditure is expected to be €1.1bn in 2011, rising to €1.6bn in 2015.
Shares were up 4.3% at 147.8p by 09:07.
BC
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published