Southwest Airlines became the first major U.S. airline to reinstate its quarterly dividend, more than two years after suspending it in the wake of the pandemic. CEO Bob Jordan said the reinstatement reflects "the strong return in demand for air travel" as well as Southwest's "solid" operating and financial performance since March.

While mounting economic worries have clouded the outlook for consumer spending, the carrier said it had seen no signs of a slowdown in travel demand. Next year "is shaping up to be a very strong year with the opportunity to return to pre-pandemic profit levels," Jordan said at the company's investor meeting.

Southwest will pay a quarterly dividend of 18 cents per share to shareholders on Jan. 31. The dividend payout amounts to $428 million yearly, and the airline expects Q4 revenue to be up as much as 17% over 2019. The move, however, drew criticism from its pilot union, which is demanding higher pay raises and better work rules in a new contract.