SEATTLE, Aug. 6, 2015 /PRNewswire/ -- The board of
directors of Alaska Air Group (NYSE: ALK) has approved a share
repurchase program authorizing the company to buy back up to
$1 billion of its common stock. This
is the largest repurchase program in the airline's history,
representing 10 percent of the stock market capitalization of the
company.
The board also declared a quarterly cash dividend of
20 cents per share payable on
Sept. 1 to shareholders of record as
of Aug. 18.
"Our growing network, low fares, outstanding operational
reliability, and the award-winning service delivered by our
employees are producing excellent financial results and record cash
flows," Alaska Airlines CEO Brad
Tilden said. "We are reinvesting in the business and
returning cash to our owners, and we intend to continue doing more
of the same in the future. We are confident in the future of Alaska
Air Group and committed to building long-term shareholder
value."
The $1 billion repurchase program
will begin after the existing $650
million buyback is completed.
The repurchase program allows the company to repurchase its
common stock using open market stock purchases, negotiated
transactions or through other means, including accelerated share
repurchases and 10b5-1 trading plans.
This will be Alaska's ninth
repurchase program since 2007. The company has spent over
$1.1 billion buying back more than 53
million shares of its stock, or about one third of the total shares
outstanding at that time.
Air Group began paying a quarterly dividend of 10 cents per share in August of 2013. The
dividend was increased to 12.5 cents
per share in February 2014 and
increased again to 20 cents per share
in January 2015. Air Group has paid out $148 million in quarterly dividends in less than
two years.
Alaska Airlines, a subsidiary of Alaska Air Group (NYSE: ALK),
together with its partner regional airlines, serves more than 100
cities through an expansive network in the United States, Canada and Mexico. Alaska Airlines ranked "Highest in
Customer Satisfaction Among Traditional Carriers in North America" in the J.D. Power North America
Airline Satisfaction Study for eight consecutive years from 2008 to
2015. Alaska Airlines' Mileage Plan also ranked "Highest in
Customer Satisfaction with Airline Loyalty Rewards Programs" in the
J.D. Power 2014 and 2015 Airline Loyalty/Rewards Program
Satisfaction Report. For reservations, visit www.alaskaair.com. For
more news and information, visit Alaska Airlines' newsroom at
www.alaskaair.com/newsroom.
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SOURCE Alaska Air Group