Delta reinstates quarterly dividend after three-tear halt

Delta Air Lines Inc.’s board voted to restart the company’s quarterly dividend, which was suspended in March 2020 at the outset of the coronavirus pandemic.

The 10-cents-a-share payout “reflects Delta’s progress on its three-year financial plan,” the Atlanta-based carrier said in a statement Thursday. Delta and other airlines halted dividends and share buybacks as a condition of receiving federal financial aid after air travel nearly ground to a halt early in the pandemic.

The resumption of the payouts marks another step in the US airline industry’s recovery from the pandemic. Delta joins Southwest Airlines Co., which in January became the first major US carrier to resume after restrictions ended in September. American Airlines Group Inc. has yet to reinstate its dividend.

Carriers that survived the downturn with the help of more than $50 billion in government aid are reporting record revenues on a sustained surge in travel since pandemic restrictions began to lift in 2021. Many airline executives remain confident that demand from leisure passengers will remain high even amid uncertainty in the economy.

Delta’s dividend is payable to shareholders of record at the close of business on July 17, and will be paid on August 7.

Its shares traded down less than 1% as of 8:53 a.m. before regular trading in New York. The stock climbed 28% this year through Wednesday’s close, outpacing the S&P 500 Index.