Hawaiian Airlines’ parent to offer first-ever dividend
Hawaiian Airlines, which is now in its 88th year of operation, said today it will offer its first-ever dividend.
Parent company Hawaiian Holdings Inc. declared a dividend of 12 cents a share to be paid on Nov. 30 to all shareholders of record.
“Today’s announcement underscores our commitment to building long-term shareholder value,” Hawaiian Airlines President and CEO Mark Dunkerley said. “This dividend program reflects our confidence in the strength of our business, future growth potential, and continued free cash flow generation. Hawaiian’s strong financial results have allowed us to grow the business profitably while strengthening our balance sheet. The decision to initiate a quarterly dividend is the natural next step to increase returns to our shareholders.”
Hawaiian’s announcement comes at a time when its stock has tumbled amid increased competition that soon will be entering the market.
United Airlines is planning to increase its Hawaii service by about 20 percent starting in December while Southwest Airlines said Wednesday it will sell tickets to Hawaii beginning next year.
Hawaiian, which is scheduled to announce its third-quarter financial results on Thursday, has seen its stock plunge 33.4 percent this year to $37.95 after trading above $60 as recently as December. The company’s shares fell $1.05, or 2.7 percent, today and have fallen 6.3 percent over the last three days. Several analysts have been lowering their target price for the stock amid the upcoming competition.
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