Delta Air Lines Approves $5 Billion Buyback Plan, Hikes Dividend
Delta Air Lines Inc (DAL.N) announced a new $5 billion share buyback program and raised its quarterly dividend, aimed at returning more than $6 billion to shareholders through 2017.
Delta shares rose 2.6 percent to $47.30 in trading before the bell on Wednesday.
The company raised its quarterly dividend to 13.5 cents per share from 9 cents, effective from the third quarter.
Delta said it was on-track to complete the remaining $725 million from its previous $2 billion buyback program by June 30, one and a half years ahead of schedule.
The company’s Chief Executive Richard Anderson had said in December that the airline would invest a minimum of $1.5 billion in buybacks and dividends in 2015.
Delta, in February, paid out nearly $1.1 billion as profit sharing for 2014 for its employees, the largest in its history.
Up to Tuesday’s close, Delta’s stock had fallen about 6 percent this year.