Aer Lingus owner scales back capacity growth plans

Aer Lingus owner, IAG, has stuck to its main long-term earnings and margin-growth targets, but scaled back its plans to expand capacity. This is a sign of the tough environment in which airlines are operating.

IAG — which also owns the British Airways, Iberia, Aer Lingus, and Vueling airlines — yesterday confirmed forecasts for average annual earnings per share growth of at least 12%, and an operating profit margin of 12%-15% for the 2016-2020 period.

Those are targets it first set out this time last year. The group did, however, trim its forecast for core earnings, saying it expected this to average €5.3bn per year, down from the €5.6bn it had previously said.