The Alaska Air Group will buy back up to $650 million of stock, in a move approved by the Board of Directors.
The buyback will equal about 10-percent of the company’s current market capitalization and comes on the heels of the current $250-million stock buyback.
In a prepared statement, the Chief Financial Officer stressed that the Alaska Air Group will finance the stock repurchases with cash on hand and cash flow from operations.
Since 2007, the Alaska Air Group has instigated 8 stock repurchase initiatives at a cost of $519-million. The Board of Directors also approved a quarterly cash dividend of 25-cents per share to be paid on June 4.
The Alaska Air Group is the parent company for Alaska Airlines.