June 15 (Reuters) – Delta Air Lines (DAL.N) said on Thursday it would pay a quarterly dividend, resuming a payout the airline suspended in March 2020 amid the COVID-19 pandemic.
The dividend, of $0.10 per share, will be paid on Aug. 7 to shareholders known as of July 17 by close of business, the U.S. airline said.
In December, Southwest Airlines (LUV.N) became the first major U.S. carrier to reintroduce its quarterly dividend, more than two years after its suspension in the wake of the pandemic.
Delta’s resumption of payout reflects progress on its three-year financial plan, the airline said, including more than $10 billion in debt service over the past two years.
The move comes as Delta expects strong summer travel demand to result in higher-than-expected earnings for the quarter through June.
As a condition of receiving $54 billion in government support during the COVID-19 pandemic, airlines were not allowed to pay dividends or buy back shares.
Those restrictions expired last fall. Delta Air Lines received $11.9 billion in US aid.
In March 2020, Delta paid a stock dividend of $0.4025, its 27th consecutive dividend at the time.
Reporting by Aishwarya Nair in Bengaluru and David Shepardson in Washington; Edited by Savio D’Souza and Alexander Smith