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Southwest Airlines (NASDAQ:LUV) announces buyback of shares, hikes dividend by 25%


Southwest Airlines (NASDAQ:LUV) has decided to pay back up to $5 billion to its shareholders through its share buyback option. It would come into effect by the end of fiscal year 2017. Another announcement was made by the airlines that said it would make a repurchase of $1.5 billion in stock and increase the quarterly dividend to 7.5 cents a share.southwest-airlines

The minister said that The Southwest Airlines’ new flights international arrivals would increase at the Daniel Oduber International Airport. It witnessed a substantial number of 378,485 visitors, which is a hike of 14.6 percent from the year 2013. He said, “For our Company to embrace our Meteorologists as a collective bargaining unit tied to the Dispatchers opens a new frontier of collaboration in planning our flights safely and efficiently with more concise weather knowledge”.

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A neutral rating was restated by JPMorgan Chase &Co. based on the shares of The Southwest Airlines. It was done through a report issued on Saturday. The Chairman of the Board, President and CEO, Gary C Kelly said, “Dedicated to returning value to our Shareholders, we returned substantially all of our free cash flow2 to Shareholders in 2014 through $1.1 billion in share repurchases and dividend payments.

In recognition of our strong financial position, performance, and cash flow outlook, the Board’s actions today further reinforce our commitment to create value for our Shareholders. The Board increased our quarterly dividend payment by 25 percent and authorized a new $1.5 billion share repurchase program, representing the largest single authorization in our long-standing history of share repurchase programs.”

“Our balance sheet and liquidity remain strong with cash and short-term investments of approximately $3.2 billion1, and a fully available unsecured revolving credit line of $1 billion. We remain the only investment grade U.S. airline by all three credit agencies. Our debt levels are modest, and we continue to prudently manage our invested capital.”

The Southwest Airlines also announced that it will offer new international service from Houston Hobby to as many as eight cities by the end of 2015. Flights will be offered to Cancun, Puerto Vallarta and Los Cabos, Mexico by the The Southwest Airlines at the unimaginable price of $149, $99 and $174. All these price announcements are stated on the basis of one way tickets.

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About David Mayor

david@thenextdigit.com'
Writer and editor of The Next Digit Media, he takes care of iOS, Apple, Mac and other gadgets. He worked at Apple Inc, before joining to TND Media. He was graduated in Bachelor of Journalism & Mass Communication Degree from Cambridge University. All posts by David

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