IAG reiterates Aer Lingus interest on profit showing

IAG has reiterated its intention to purchase Aer Lingus on the back of a 20% upgraded profit guidance for this year.

The British Airways owner upgraded its profit forecast yesterday, after reporting a slightly better than expected 81% increase in profits for last year. The company reported 2014 operating profits of €1.39bn, ahead of a company-supplied consensus forecast of €1.37bn. The airline said it now expected operating profit of €2.2bn in 2015, compared to the €1.8bn it had said it was targeting, helped by lower fuel costs and as it grows capacity.

The upgrade is the latest in a series of announcements from IAG, which raised this year’s forecast last October, buoyed by its exposure to strong demand for North Atlantic travel and the return of its Spanish arm Iberia to profitability.