IAG upgrades 2015 profit forecast

LONDON, Feb 27 (Reuters) - British Airways-owner International Airlines Group upgraded its profit forecast for 2015 by over 20 percent, after reporting a slightly better than expected 81 percent jump in profit last year.

IAG, in the process of trying to acquire Ireland (Other OTC: IRLD - news) 's Aer Lingus, on Friday reported 2014 operating profit of 1.390 billion euros, ahead of a company-supplied consensus forecast of 1.373 billion euros.

The airline said it now expected operating profit of 2.2 billion euros in 2015, compared to the 1.8 billion euros it had said it was targeting, helped by lower fuel costs and as it grows capacity.

The upgrade is the latest in a series from IAG, which raised this year's forecast last October, buoyed by its exposure to strong demand for North Atlantic travel and the return of its Spanish arm Iberia to profitability.

IAG, which owns low-cost Vueling in Spain as well as British Airways and Iberia, wants to add Aer Lingus (Other OTC: AELGF - news) to its portfolio but its 1.36 billion euros approach is yet to get the backing from the Irish government, which owns a 25 percent stake. (Reporting by Sarah Young; editing by Kate Holton)