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DALLAS (AP) — Southwest Airways stated Wednesday that it’s bringing again dividends for shareholders, which it suspended when the pandemic devastated the airline enterprise in early 2020.
Dallas-based Southwest stated in a regulatory submitting that it’ll pay a quarterly dividend of 18 cents per share on Jan. 31.
The transfer comes as air journey rebounds and U.S. airways return to profitability as a consequence of full planes and sharply greater fares than a yr in the past.
Southwest has posted the highest net income amongst U.S. airways within the first 9 months of this yr, reporting a $759 million revenue in that span.
CEO Robert Jordan stated the choice to revive the dividend replicate a powerful return in demand for journey and Southwest’s “strong” monetary outcomes since March.
U.S. airways have been barred from paying dividends or shopping for again their very own inventory till October, as a situation of taking $54 billion in federal pandemic help. None have but introduced share buybacks.
Southwest repeated its earlier forecast that fourth-quarter income will rise by as much as 17% over the identical interval in 2019.
Jordan stated final week that Southwest is unable to make use of 40 to 45 of its 700-plus airplanes as a result of it doesn’t have sufficient pilots to fly them. The airline has been hiring, however is within the course of of coaching extra pilots. Southwest stated in Wednesday’s submitting that it expects to extend passenger-carrying capability subsequent yr by as much as 15%.
Airline executives have been scheduled to debate the outlook later Wednesday at an investor convention.
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