(Reuters) – Southwest Airlines reinstated its dividend on Wednesday, becoming the first major U.S. airline to make the move, more than two years after suspending it due to the COVID-19 pandemic.
US airline groups benefited from the positive effect of demand for leisure travel and the gradual return of business travel, enabling them to post solid quarterly profits despite fears of an economic slowdown.
“Our outlook for the fourth quarter of 2022 remains strong and we have a solid plan for 2023,” Group Chief Executive Bob Jordan said in a statement.
Southwest Airlines expects ‘strong leisure revenue trends’ to continue in the first quarter of 2023, while the business travel sector is expected to improve, according to a regulatory document filed ahead of its investor day Wednesday.
Southwest thus restores a dividend of 0.18 dollars per share for the third quarter, the same level as before the health crisis.
The carrier also lowered its fuel cost forecast for the fourth quarter by about 5 cents per gallon, from its previous estimate.
(Written by Priyamvada in Bangalore; French version Diana Mandia, editing by Kate Entringer)
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