Southwest boosting dividend, splitting stock

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Friday, Jan. 19, 2001 | 11:15 a.m.

SUN STAFF AND WIRE REPORTS

DALLAS -- Southwest Airlines Co., which has seen its share price almost double in the past year, said it will split its stock 3 for 2 on Feb. 15 and increase its quarterly cash dividend almost 23 percent.

The largest low-fare carrier, the top airline in Las Vegas, said the split will be for shareholders as of Jan. 26. The dividend, now 55 cents a share, will be 45 cents on the larger number of shares after the split, said spokeswoman Marcy Brand. The higher dividend is payable March 27 to shareholders as of March 2.

Southwest on Tuesday said its fourth-quarter profit rose 65 percent as it flew more passengers, used contracts to lessen the effect of higher fuel prices and increased fares. The increase was the best among major U.S. airlines reporting results this week. The company's share price has risen 90 percent in the past year.

The Dallas-based airline "is very grateful for its financial success and continued profitable growth," said Herb Kelleher, chairman and chief executive, in a statement.

The company said it had 507.9 million shares outstanding as of Tuesday. Southwest's last stock split was 3 for 2 in July 1999.