2nd Nov 2018 08:25
LONDON (Alliance News) - British Airways parent International Consolidated Airlines Group SA has tweaked its long-term adjusted earnings goal, while reiterating free cash flow target.
The company, which is holding a capital markets day on Friday, said it expects earnings before interest, taxes, depreciation, amortisation and rentals for operating leases to total EUR7.2 billion average per annum in 2019 to 2023, compared with EUR6.5 billion average per annum expected previously for 2018 to 2022.
Average equity free-cash flow target has been retained at EUR2.5 billion per annum for 2019 to 2023 and operating profit margin of 12% to 15%. Average earnings per share growth is estimated at 12% per annum.
IAG said it now expects average net capital expenditure to total EUR2.6 billion per annum in 2019 to 2023, compared with EUR2.1 billion per annum for the 2018 to 2022 period expected previously.
Available seat kilometres - the company's passenger carrying capacity - is anticipated to grow by 6% per annum in the period, compared with the 5% growth per annum that had been predicted for 2018 to 2022.
Last month, IAG recorded a rise in third-quarter profit despite rising fuel costs and foreign exchange headwinds.
The Anglo-Spanish group, which also owns Aer Lingus, Iberia, and Vueling, posted pretax profit of EUR1.38 billion for the three months to September 30, up from a restated EUR1.23 billion pretax profit in the comparative quarter a year ago, on a revenue of EUR7.14 billion and EUR6.58 billion, respectively. On an adjusted basis, pretax profit was marginally down to EUR1.42 billion.
IAG predicted an EUR200 million increase in operating profit before exceptional items for 2018. In 2017, operating profit totalled EUR2.95 billion.
Shares in IAG were up 1.3% at 625.80 pence each on Friday.
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