FORT WORTH, Texas (AP) — American Airlines says it will pay its first dividend since 1980.
The Fort Worth-based company announced Thursday that shareholders will get a quarterly cash dividend of 10 cents per share. American will also spend up to $1 billion to buy back shares, which raises the value of remaining shares.
American Airlines Group Inc. made the announcement as it reported net income of $864 million in the second quarter, up from $220 million a year earlier.
Excluding special charges, the profit was $1.5 billion, a quarterly record for American.
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Airlines are prospering as mergers have reduced competition, making it easier to keep prices high. They’re also raising billions from extra fees.