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IAG faces €90m emissions trading bill in 2012

British Airways and Iberia parent International Airlines Group faces a €90 million bill in the first year of the European emissions trading scheme from 2012.


The figure emerged today as IAG released a raft of fresh financial information to the City. Fuel costs are forecast to rise by 14% next year, while other unit cost will be flat despite planned capacity growth of 2.5%.


IAG expects an operating profit of around €1.5 billion in 2015 achieved through an increase from €400 million to €450 million in annual synergy targets, structural profit improvements of €400 million plus organic growth of €150 million.


Optimisation of the British Airways-American Airlines transatlantic joint venture is due to deliver at least €150 million in benefits.


Further savings of at least €100 million are expected through the creation of Spanish low cost outfit Iberia Express and a similar figure from improving hub operations at Madrid’s Barajas airport.


Cost efficiency gains from the introduction of new aircraft into the fleet is estimated at around €250 million. IAG’s planned capital expenditure programme was detailed as totalling €1.1 billion in 2011, €1.6 billion next year, €2 billion in 2013, €1.35 billion in 2014 and €1.6 billion in 2015.


Capacity growth rate of 2.5% a year up to 2015 is forecast.

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