British Airways-owner IAG raised its earnings growth target for 2016-2020 to more than 12 percent a year on Friday, showing its confidence at a time when rivals are struggling to push through the sort of cost cuts it made years ago. The shares have gained a few 20 percent in the year-to-date. It also lifted the target for earnings per share by two percentage points to 12 percent.
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The long-term forecasts upgrade comes after the FTSE 100 company reached a major milestone last week, announcing its first-ever dividend since its creation in 2011 following the merger between British Airways and Iberia.
Commenting on the new appointments, IAG chief executive Willie Walsh said: “Under Alex Cruz’s leadership, Vueling has become a dynamic, innovative and cost-effective airline and Alex will bring new experience and insight to British Airways”.
On a pro-forma basis, that increase was 7.6 per cent. Meanwhile, group capacity measured in available seat kilometres rose 13.2 per cent – up 4.3 per cent on a pro-forma basis.
IAG obtained the options in September of past year.
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It said today said that Alex Cruz, current chief executive of Vueling, would next year replace Keith Williams as executive chairman of British Airways.
