International Airlines Group has set a new long-term operating profit target of around €1.5 billion in 2015.

The airlines group said it expected to achieve annual synergies of €450 million in 2015, up from earlier predictions of €400 million.

IAG chairman, Antonio Vazquez, revealed specific areas of financial benefit include the creation of Iberia Express and hub improvements at Madrid Barajas airport.

The new low-cost carrier Iberia Express was announced earlier this year and will begin operations in summer 2012.

Vazquez added: “From a 2010 base, we expect the optimisation of the transatlantic joint business with American Airlines to deliver at least €150m.’

BA and Iberia merged to form IAG in an $8 billion deal last year, which has helped buffer both carriers in the worst industry downturn in decades.