BA Boss To Retire As Group Raises Forecasts

The parent company of British Airways has announced that the airline's boss and chief financial officer are to be replaced next year.

International Airlines Group (IAG) said Keith Williams, who has run BA since 2011 when IAG was formed, was to retire in April (LSE: 0N69.L - news) and he would be succeeded by the head of another airline within the group, Vueling's Alex Cruz.

It (Other OTC: ITGL - news) added that the head of IAG's cargo business, Steve Gunning, would take over the finances from Nick Swift.

The changes were announced as the group raised a series of financial targets.

The targets underline the group's confidence in a market that has seen major rivals, especially Lufthansa, damaged by strikes and workforce rows.

It said it was increasing its operating profit margin to between 12% and 15% for 2016 to 2020 and expected average earnings per share growth of 12% during the period - up from its earlier guidance of 10%.

IAG recently acquired Irish carrier Aer Lingus for £910m, giving it a greater hold on slots at London's Heathrow Airport and further access to key transatlantic routes.

The group's portfolio also includes Iberia - which has undergone a painful cost-cutting exercise to help improve profitability.

Commenting on the changes to personnel at the top of BA, IAG chief executive Willie Walsh said: "Under Alex Cruz's leadership, Vueling has become a dynamic, innovative and cost-effective airline and Alex will bring new experience and insight to British Airways.

"Steve Gunning ...has been highly effective in setting up IAG's first ever single business unit at IAG Cargo.

The business is industry-leading with a ground-breaking operating model and cost focus (Other OTC: UBGXF - news) ."