IAG shares rose 1.7 percent after it said that it was targeting core earnings (EBITDAR) of 6.5 billion euros (5.80 billion pounds) per year between 2018-2022, compared to a goal of an annual 5.3 billion euros between 2016-2020.
For the same period, the airlines group also provided higher targets for capital expenditure and capacity growth, measured in available seat kilometres (ASK) - a key metric for airlines.
IAG, which also owns Iberia, Aer Lingus and Vueling, a week ago said it expected profits to rise by nearly 20 percent this year. On Friday its senior management will update analysts at a capital markets day (CMD).
The group stuck to its target for return on invested capital (ROIC), which one analyst said was a disappointment.
"No increase in ROIC target of 15 percent, which is disappointing and we expect today’s CMD to focus on how profit guidance is being raised but no lift to the return target," analysts at Goodbody said in a note.
The group said it was still targeting average EPS growth of over 12 percent each year, and its target for an annual operating profit margin between 12-15 percent was also unchanged.
(Reporting by Alistair Smout; Editing by James Davey and Edmund Blair)