Alaska Air Group’s board approves a $650 million buy back

Alaska Air Group’s board of directors (Alaska Airlines and Horizon Air) (Seattle/Tacoma) has approved a share repurchase program authorizing the company to buy back up to $650 million of its common stock. This share repurchase program represents approximately 10 percent of the market capitalization of the company.

The board also approved a quarterly cash dividend of 25 cents per share as part of Air Group’s program to be a leader in returning capital to investors. The dividend to all shareholders of record as of May 20 will be paid on June 4.

The $650 million repurchase program will begin immediately after the existing $250 million buyback is completed.

AAG intends to finance the dividend and stock repurchases with cash on hand and cash flow from operations.

The 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 eighth repurchase program since 2007. The company has spent $519 million buying back more than 21 million shares of its stock.

Alaska Air Group began paying a quarterly dividend of 20 cents per share in August 2013, the first time since 1992 that the company had paid a dividend. It was increased to 25 cents per share this past February.

Copyright Photo: Alaska Airlines’ Boeing 737-490 N791AS (msn 28886) taxies at Los Angeles International Airport in the special “Follow Me to Disneyland” color scheme.

Alaska Airlines: AG Slide Show

Alaska Horizon: AG Slide Show

Horizon Air: AG Slide Show