ATLANTA (AP) _ Shares of Delta Air Lines Inc. rose Wednesday after the carrier announced a plan to buy back $5 billion in its own stock and boost the dividend.
Delta said that the buybacks would be done by the end of 2017. It expects to finish an earlier $2 billion share-buyback program in June, more than a year ahead of plan. When companies buy back their own stock, it increases the value of remaining shares.
The Atlanta-based airline also said it would increase the quarterly dividend to 13.5 cents per share from nine cents per share starting with the third quarter.
Last month, Delta reported that first-quarter income tripled to $746 million, helped by steady ticket demand and lower fuel costs.
In morning trading, the shares were up $1.16, or 2.5 percent, to $47.26. They began the day down 6 percent in 2015.