LONDON: International Airlines Group has raised its 2015 profit target, showing confidence in the growth of trans-Atlantic travel and turnaround plans for its Spanish airlines, bucking the trend in a sector hit by weak European markets and high fuel prices.

IAG, which owns British Airways (BA) and Spain’s Iberia and Vueling, on Friday raised its 2015 operating profit goal to 1.8 billion euros ($2.4 billion) from 1.6 billion, citing savings from integrating budget carrier Vueling, which it took control of this year, improved margins at BA and a recovery at Iberia.

Analysts had on average penciled in a 2015 operating profit of 1.63 billion euros, according to Thomson Reuters data.

IAG’s optimism contrasts with other European airlines such as Lufthansa and Air France-KLM which have had to cut jobs and rein in growth plans to cope with rising costs and weak economies.

IAG, Europe’s No. 3 airline group by market value, has been helped by the fact BA undertook a restructuring ahead of many rivals, as well as its strength in transatlantic travel, which has proved more resilient than many shorter-haul routes.

Last week, IAG reported a doubling in first-half profit and said passenger traffic rose 8.9 percent year-on-year in October.

The group said on Friday it expected 650 million euros of cost savings by 2015, helped by the introduction of new, more fuel efficient planes, as well as moves to outsource administrative work and renegotiate ground handling contracts at seven European airports.

That is 16 percent up on the 560 million euros of cost savings it forecast at the same time last year.

Spanish flag carrier Iberia became unprofitable in all markets, including long haul, following its merger with BA in 2011. IAG is in the process of revamping the carrier, which was hit by competition from low-cost airlines and high-speed trains during five years of harsh economic conditions in Spain.

Iberia must cut staff by 3,141 before 2015, and reduce average salaries and capacity by 15 percent and 14 percent respectively as part of IAG’s restructuring plan.

Iberia, which is due to make its first annual profit this year since 2010, has cut 1,737 employees so far.

“Iberia is on track with improvement expected,” said IAG’s Chief Financial Officer Enrique Dupuy.

“We believe in the future of Iberia but we will need significant restructuring efforts to succeed.”

BA, meanwhile, is performing consistently well, boosted by strong transatlantic traffic out of its London Heathrow base.

As such, IAG increased BA’s 2015 operating profit target to 1.3 billion pounds from 1.1 billion pounds.

The airline group led by CEO Willie Walsh also said it was heading for a business model that could sustain underlying revenue growth of 2-3 percent, excluding Vueling, beyond 2015.

It added it was aiming for earnings per share (EPS) of 0.54 euros by 2015 and capital spending of 2-2.2 billion euros a year. Analysts expect EPS of 0.14 euros this year and spending of 1.9 billion euros, according to Thomson Reuters data.

IAG last week said it was targeting 2013 operating profit of around 740 million euros, up from a loss of 68 million euros in 2012.

IAG shares, which have doubled in 2013, were down 1.5 percent to 367.2 pence by 1135 GMT, valuing the group at around 7.6 billion pounds.