Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to pressures the industry faces from expensive labor contracts.
25.08.2023 - 14:30 / skift.com / Ed Bastian / Delta Air Lines / Edward Russell / Shane Tackett
Southwest Airlines will pay a dividend to its shareholders of record as of January 10, 2023. This may not seem like a notable move for a carrier that has paid dividends for most of 50-plus year existence but it is: Southwest will be the first U.S. airline to resume shareholder returns since the pandemic.
Shareholder returns, including dividends and stock buybacks, were barred at any airline that took federal aid under the U.S. CARES Act until this September. Most carriers have also returned to profitability on the back of strong travel demand. Dallas-based Southwest made a $277 million net profit in the third quarter.
Other U.S. carriers may not be far behind Southwest. Alaska Airlines Chief Financial Officer Shane Tackett said in October that the carrier’s management would discuss the possibility of resuming “potential shareholder returns” with Alaska’s board in November. There is no word yet on any decision from the Seattle-based carrier.
U.S. airlines, including Southwest and Alaska, are seeing strong travel demand into the new year. Delta Air Lines CEO Ed Bastian in October went as far as to claim that travel is “countercyclical” to the macroeconomic trends of high inflation and a potential U.S. recession.
Airlines practice of giving some cash back to shareholders was in the spotlight when the industry was pushing for federal relief in the CARES Act. Some noted that, had the industry not paid dividends our bought back shares in the years prior to the crisis, they may not need the government hand out. Airlines pushed back on this claim, rightly arguing that such returns were standard practice across businesses and not just airlines.
Southwest will pay its investors an $0.18 per share dividend for the fourth quarter on January 31, it said Tuesday. The carrier estimates the dividends will total roughly $428 million.
Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to pressures the industry faces from expensive labor contracts.
U.S. airlines and airports have geared up for a busy weekend ahead of the Labor Day holiday as travelers plan to jet off to international locations and cooler destinations.
There is a shortage of a critical skilled labor group needed to keep America’s airlines flying: Pilots, particularly captains, are in short supply and that’s resulting in fewer flights to some of the smallest cities across the country.
The deadly wildfires on the island of Maui are likely to affect visitor — and airline — demand to the island for the “foreseeable future,” analysts at T.D. Cowen said Friday.
It’s not often that travelers have something to look forward to at Newark Liberty International Airport. The new $2.7 billion Terminal A will open in December, the latest in a series of major airport projects opening around the U.S. this year.
Good morning from Skift. It’s Wednesday, December 14, and we are live in Dubai for the next two days. Here’s what you need to know about the business of travel today.
Good morning from Skift. It’s Thursday, December 8. Here’s what you need to know about the business of travel today.
Pure Michigan is back. The advertising arm of Travel Michigan, the state’s official tourism promotion office, is launching a national winter marketing campaign for the time since 2019, featuring videos showcasing Michigan as a prime destination for cold weather adventures.
In hindsight, we should have known the mess that was air travel in 2022 was coming. Airlines kicked off the year canceling tens of thousands of flights amid the surge in Omicron variant cases that kept crews at home, and travelers — unfortunately — on the ground.
Shareholders filed a lawsuit against Southwest Airlines Co on Thursday, accusing the carrier of fraudulently concealing problems that led last month to an operational meltdown and more than 15,000 flight cancellations.
The CEO of Southwest Airlines issued a statement to customers with new details about actions the company is taking following the debacle in the last week of December.
Join Skift editors and research analysts as we speak with hospitality gamechangers alongside an audience of 300+ leaders, investors, and strategists. You will not want to miss this travel industry event featuring insightful, editorially-driven discussions.