(NYSE:DAL) announced yesterday that it plans to return up to $ 5 billion to its shareholders through a share buyback option by the end of fiscal year 2017 (FY17). The airline also said it will repurchase another $ 1.5 billion of stock and boosted the quarterly dividend to 7.5 cents a share. According to the minister, Southwest's new flights will further increase the number of international arrivals to Daniel Oduber International Airport, which last year recorded 378,485 visitors, a 14.6 percent increase from 2013. "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".
JPMorgan Chase & Co. restated their neutral rating on shares of Southwest Airlines (NYSE:LUV) in a report issued on Saturday.
Gary C. Kelly, Chairman of the Board, President, and CEO, stated: "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.
In addition, Southwest said that it will offer new international service from Houston Hobby to eight cities by the end of this year.
Effective Oct. 15, Dallas-based Southwest will be offering flights to Cancun, Puerto Vallarta and Los Cabos, Mexico, for $ 149, flights from Mexico City for $ 99, flights from Belize City, Belize, for $ 127 and flights from San Jose, Costa Rica, for $ 174. Effective Nov. 1, the airline will offer flights to Liberia, Costa Rica, for $ 174 and flights to Montego Bay, Jamaica, for $ 199. All new international pricing announced so far have been for one-way economy tickets.
The services to Jamaica, Costa Rica and Belize are subject to foreign government approval, the carrier said.
SOURCE Southwest Airlines Co.
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