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IAG upgrades 2015 profit forecast
27 Feb 2015 15:03
British Airways-owner International Airlines Group today increased its 2015 profit forecast by over 20%, outperforming weaker continental rivals.
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IAG, which is trying to acquire Aer Lingus, said the profit increase would be driven by cost control across the group and growth at its Iberia Spanish unit which until last year had dragged on the business.
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Created by a merger in 2011, IAG prioritised cutting staff costs before rival continental flag carriers Lufthansa and Air France-KLM.
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It is also seeing the benefits of a painful restructuring at Iberia, where it cut jobs and salaries.
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IAG is also a step ahead of Europe's other traditional airlines through its exposure to the continent's fast-growing low-cost sector, having acquired discount carrier Vueling in 2013, enabling it to compete with Ryanair and EasyJet.
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