Aer Lingus owner IAG said it was aiming for annual core earnings around 20% higher than previous targets on Friday as it stuck to its goals for earning-per-share growth and margins for the coming years.
IAG shares rose 1.7% after it said that it was targeting core earnings (EBITDAR) of 6.5 billion euros per year between 2018-2022, compared to a goal of an annual 5.3 billion euros 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, Aer Lingus and Vueling, a week ago said it expected profits to rise by nearly 20% this year. On Friday its senior management will update analysts at a capital markets day (CMD).
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. (Reuters)
Source: www.businessworld.ie
