Southwest Airlines is to reinstate its quarterly dividend after a suspension lasting almost three years, it said in a December 7 filing to the US Securities and Exchange Commission (SEC).
Payments were halted in early 2020 due to rules related to the US $54 billion in government cash made available to airlines to pay workers during pandemic lockdowns, when travel faced severe restrictions.
The US$0.18 dividend is to be paid again by the Dallas-based carrier from January 2023, according to the filing, which came ahead of a meeting with investors set for later in the day.
US air traffic largely recovered to pre-pandemic passenger numbers in 2022, data from carriers and industry organisations show.
“Today’s announcement reflects the strong return in demand for air travel and the company’s solid operating and financial results since March 2022,” said Bob Jordan, chief executive of Southwest, which expects Q4 2022 revenue to be 17% above 2019.
