Southwest Airlines brings back dividend as travel rebounds

Follow us on Google News:

DALLAS (AP) — Southwest Airlines said Wednesday that it is bringing back dividends for shareholders, which it suspended when the pandemic devastated the airline business in early 2020.


Dallas-based Southwest said in a regulatory filing that it will pay a quarterly dividend of 18 cents per share on Jan. 31.

The move comes as air travel rebounds and U.S. airlines return to profitability due to full planes and sharply higher fares than a year ago.

Southwest has posted the highest net income among U.S. airlines in the first nine months of this year, reporting a $759 million profit in that span.

CEO Robert Jordan said the decision to restore the dividend reflect a strong return in demand for travel and Southwest’s “solid” financial results since March.

U.S. airlines were barred from paying dividends or buying back their own stock until October, as a condition of taking $54 billion in federal pandemic aid. None have yet announced share buybacks.

Southwest repeated its previous forecast that fourth-quarter revenue will rise by up to 17% over the same period in 2019.

Jordan said last week that Southwest is unable to use 40 to 45 of its 700-plus airplanes because it doesn’t have enough pilots to fly them. The airline has been hiring, but is in the process of training more pilots. Southwest said in Wednesday’s filing that it expects to increase passenger-carrying capacity next year by up to 15%.

Airline executives were scheduled to discuss the outlook later Wednesday at an investor conference.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Featured Articles