Southwest Airlines Holds Back Delivery of 30 Boeing 737-800s

American low-cost carrier Southwest Airlines has confirmed it will defer the purchase of 30 Boeing 737-800 aircraft for four years. Dallas-based Southwest said it would move 20 scheduled plane deliveries from 2013 and ten from 2014 to 2017 and 2018 respectively.

The policy is aimed at saving more than $1 billion in capital spending. At the same meeting, the airline said its board has raised the quarterly dividend to one cent per share from the prior level of less than half a penny.

An increase in the company’s share buyback program to $1 billion from $500 million has also been approved.