The buyback option will be offered to the shareholders of the Southwest Airline by the end of financial year 2017. The company informed via a statement that $5 billion will be returned to its customers within next two years. The quarterly dividend has been increased by 7.5 percent per share and therefore the company plans to buy a stock worth $1.5 billion.
As per the company officials, the number of international arrivals from the Daniel Oduber International Airport will be boosted due to new flights on the route. Last year, the international arrivals from the same route were 378,485 visitors, a sharp increase of 14.6 percent. The company has been working lot on the safely and efficiency of the airline with help of accurate weather knowledge. The company management informed that they value their meteorologist and their collaboration has been helping lot to achieve the goals.
In terms of stock market position, the airline earned a neutral rating for its share from the investment banking major JPMorgan Chase & Co. Chief Executive Officer Gary C. Kelly of the Texas based airline said that the management is committed to return the value to the shareholders. In 2014, the company returned $1.1 billion to its share holders through dividend payments and share repurchases. The CEO, who is also, serves as the President and Chairman of the board assured that company will follow similar routes for free cash flow. The management will also work hard to create more value to the shareholders. The company just approved largest single approval for the share repurchasing.