The board of directors of Alaska Air Group (NYSE: ALK) said it has approved a share repurchase program authorizing the company to buy back up to USD1 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 USD0.20 per share payable on Sept. 1 to shareholders of record as of Aug. 18.
The USD1 billion repurchase program will begin after the existing USD650 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 USD1.1 billion buying back more than 53 million shares of its stock, or about one third of the total shares outstanding at that time.
Alaska Airlines, a subsidiary of Alaska Air Group, together with its partner regional airlines, serves more than 100 cities through an expansive network in the United States, Canada and Mexico.