British Airways owner IAG said it was aiming for annual core earnings around 20 percent higher than previous targets as it stuck to its goals for earning-per-share growth and margins for the coming years.
IAG shares rose 1.7 percent after it said that it was targeting core earnings (EBITDAR) of 6.5 billion euros ($7.57 billion) per year between 2018-2022, compared to a goal of an annual 5.3 billion euros between 2016-2020.
IAG, which also owns Iberia, Aer Lingus and Vueling, a week ago said it expected profits to rise by nearly 20 percent this year.
The group said it was still targeting average EPS growth of over 12 percent each year, and its target for an annual operating profit margin between 12-15 percent was also unchanged.
INTERNATIONAL CONSOLIDATED AIRLINES GROUP often shortened to IAG, is an Anglo-Spanish multinational airline holding company with its operational headquarters in London, England and its registered office in Madrid, Spain. It was formed in January 2011 after a merger agreement between British Airways and Iberia, the flag carrier airlines of the United Kingdom and Spain respectively. As British Airways was the larger company, those holding shares in British Airways at the time of the merger were given 55% of the shares in the new, merged company. British Airways and Iberia ceased to be independent companies and instead became 100% owned subsidiaries of IAG. It is the sixth-largest airline company in the world, producing €22.567 billion revenue in 2016.