Delta Raises Dividend, Plans Wrap Up of Repurchase Program

Delta Air Lines Inc., the nation's No. 2 airline by traffic, said it would boost its annual dividend and finish off a $5 billion stock-buyback program in May of next year.

In a presentation to analysts, the Atlanta-based airline said it would increase the annual dividend to 81 cents from 54 cents beginning in the September quarter, marking the third consecutive 50% increase to the payment since 2013.

Delta also said it would wrap up its latest stock-repurchase plan, launched last year, by making $3 billion in purchases in the coming year. The airline unveiled a $5 billion authorization in May of 2015. Delta said it plans to make $375 million in accelerated share repurchases during the quarter ending in June. The company has a market valuation of roughly $32 billion.

Delta edged United Continental Holdings Inc. in 2015 to become the nation's No. 2 airline based on traffic figures for the year.

Delta said it ended the year with 209.6 billion miles flown by paying passengers, up 3.3% from the prior year. The company's shares rose about 3.1% in afternoon trading to $42.88.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

May 16, 2016 15:05 ET (19:05 GMT)

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