IAG sets higher profit target

International Airlines Group has revised its long-term operating profit target to €1.5 billion in 2015. The increase comes on the back of a revision in the cost savings gained from the British Airways-Iberia merger – annual synergies are expected to reach €450 million in 2015. “Specific areas of financial benefit including the creation of (low-cost carrier) Iberia Express — at least 100 million euros — and hub improvements at Madrid Barajas airport,” IAG chairman Antonio Vazquez said. “From a 2010 base, we expect the optimisation of the transatlantic joint business with American Airlines to deliver at least 150 million euros.”