IAG outlines growth plans for 2015
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
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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