Southwest’s bullish forecast

Southwest Airlines has stated that it expects to see capacity growth of 7% in 2015 and 6% to 7% in 2016. The airline says it can afford to invest to add capacity and new aircraft even after factoring in a new dividend payout rate and buyback program. Southwest has announced a $0.075 dividend and a new $1.5B share buyback plan, which includes $300million set aside as part of an accelerated program. Southwest anticipates its fleet size will increase by 2% in 2016.