At its Capital Markets Day today, IAG will tell analysts that it now expects underlying earnings (EBITDAR) to average €7.2bn per annum over the next five years.
That’s ahead of last year’s five-year forecast when the group said it expected earnings to average €6.5bn a year.
To help push profits higher, IAG, which also owns Aer Lingus and Iberia, is now planning to increase capacity by 6% between now and 2023, compared to previous guidance of 5%.
That is likely the driving factor behind a hike in cost estimates, along with the recent rise in fuel prices. Net capex (capital expenditure) is now expected to average €2.6bn a year (previously €2.1bn).
The FTSE 100 group left margin guidance unchanged at between 12-15%, while it also still expects earnings per share to grow 12%+ over the coming five years.
IAG shares were up almost 2% to 630p in early deals on Friday.