IAG pulls back capacity growth forecast
IAG is cutting its medium-term capacity growth targets, slashing the figure to 3.4% per year for 2020-22 from its previous level of 6% for 2019-23. Capacity growth in 2020 will be around 3.2%, says the company, discounting effects from the British Airways strike in September this year. This moderation of expansion will be reflected in lower average earnings per share growth of 10% for the 3-year period rather than the 12% originally expected. Despite the revisions the company is maintaining its aim of a 12-15% operating profit margin for the period. IAG plans gross capital expenditure of E4.7b (US$5.2b) per year against a net capital expenditure of E2.6b under the previous outlook. This reflects a switch from net to gross capital expenditure in its forecasts. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-11-11/oneworld/iag-pulls-back-capacity-growth-forecast
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IAG pulls back capacity growth forecast
IAG is cutting its medium-term capacity growth targets, slashing the figure to 3.4% per year for 2020-22 from its previous level of 6% for 2019-23. Capacity growth in 2020 will be around 3.2%, says the company, discounting effects from the British Airways strike in September this year. This moderation of expansion will be reflected in lower average earnings per share growth of 10% for the 3-year period rather than the 12% originally expected. Despite the revisions the company is maintaining its aim of a 12-15% operating profit margin for the period. IAG plans gross capital expenditure of E4.7b (US$5.2b) per year against a net capital expenditure of E2.6b under the previous outlook. This reflects a switch from net to gross capital expenditure in its forecasts. <br/>
