Sombody’s
DB plan is getting some money! And what about those financial commitments?
Delta Air Lines Initiates Dividend, Stock Buyback Plan
As
part of its recently updated five-year financial plan, Delta Airlines (NYSE: DAL ) has authorized a $500 million share repurchase program
over the next three years, and instituted a $0.06-per-share quarterly dividend
for shareholders of record on Aug. 9, the company announced
today.
In
addition to the repurchase plan and quarterly dividend, which is expected to
return more than $1 billion to shareholders over the next three years, Delta
will contribute up to $1
billion to its defined benefit plan, beyond the existing required annual minimum payments of
$650 million to $750 million.
According
to Delta Chairman of the Board Daniel Carp, "Delta's financial performance
and balance sheet have strengthened considerably over the past five years, and
the board believes the company is now in a position to begin returning cash to
our shareholders."
Delta
intends to use its free cash flow
to fund the new financial
commitments, and to, "further reduce the company's debt, and
opportunistically address longer-term pension funding needs, driving up to $5
billion of value to Delta's shareholders," according to the announcement.
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