Encouraged by much-improved results across all airline units and robust unit revenues, International Airlines Group (IAG) plans to expand capacity significantly in 2018, a move met with concerns by investors. IAG—parent company of British Airways, Iberia, Vueling and Aer Lingus—anticipates a 6.7% capacity increase for 2018, compared to a 2.6% expansion last year. “IAG’s outlook for a positive unit revenue environment in 2018 runs counter to our own analysis ...

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