Flush with 2Q profit, American Airlines will pay its first dividend to shareholders since 1980

American Airlines says it will pay its first dividend since 1980.

The company announced Thursday that shareholders will get a quarterly cash dividend of 10 cents per share. American will also spend up to $1 billion to buy back shares, which raises the value of remaining shares.

American Airlines Group Inc. made the announcement as it reported net income of $864 million in the second quarter, up from $220 million a year earlier.

Excluding special charges, the profit was $1.5 billion, a quarterly record for American.

Airlines are prospering as mergers have reduced competition, making it easier to keep prices high. They're also raising billions from extra fees.

Few airlines pay dividends. Southwest Airlines pays one, and Delta Air Lines restored its dividend last year.