Aer Lingus owner IAG said it was aiming for annual core earnings around 20% higher than previous targets as it stuck to its goals for earning-per-share growth and margins for the coming years.
IAG said that it was targeting core earnings (EBITDAR) of €6.5 billion a year between 2018-2022, compared to a goal of an annual €5.3 billion between 2016-2020.
For the same period, the airlines group also provided higher targets for capital expenditure and capacity growth, measured in available seat kilometres (ASK) - a key metric for airlines.
IAG, which also owns Iberia, British Airways and Vueling, a week ago said it expected profits to rise by nearly 20% this year.
Its senior management will update analysts at a capital markets day today.
The group stuck to its target for return on invested capital (ROIC), which one analyst said was a disappointment.
"No increase in ROIC target of 15%, which is disappointing and we expect today’s CMD to focus on how profit guidance is being raised but no lift to the return target," analysts at Goodbody said in a note.
The group said it was still targeting average EPS growth of over 12% each year, and its target for an annual operating profit margin between 12-15% was also unchanged.
