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BA owner IAG 'confident' of its targets as it plans first dividend since merger

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IAG chief executive Willie Walsh briefed investors. Photo: PA

IAG chief executive Willie Walsh briefed investors. Photo: PA

IAG chief executive Willie Walsh briefed investors. Photo: PA

British Airways owner IAG yesterday laid out plans to pay a maiden dividend, coming of age three years after it was created in a merger between BA and Spain's Iberia.

International Airlines Group, which is headed by former Aer Lingus boss Willie Walsh, said it was confident of increasing profit by more than 10pc a year between 2016 and 2020, on top of significant growth this year and next. As a result it said it anticipated announcing next year that it would start paying shareholders. "We remain confident in meeting our 2015 financial targets which we see as the trigger to introducing a dividend," it said ahead of an investor day yesterday.

BA and Iberia sealed an $8bn merger in 2011, a move which helped both stem huge losses following the worst industry downturn in decades.

Years of tough restructuring followed - with thousands of job cuts and salary and capacity reductions.

(Reuters)

Irish Independent