Skymark Airlines Inc., Japan's largest low-fare carrier, may pay a dividend for the first time next business year to help stem a decline in its shares.

The carrier will consider a dividend of ¥10 a share in the business year starting April 1, contingent upon meeting its profit targets, President Shinichi Nishikubo said in an interview Tuesday in Tokyo.

The airline forecast a pretax profit of ¥2.8 billion for the current year.

Skymark's shares slumped 27 percent in the last six months, underperforming larger rivals All Nippon Airways Co. and Japan Airlines Corp.

At Skymark's current price, the proposed dividend would give shareholders a return nearly four times better than ANA. JAL has omitted dividends for the past two years.

"It indicates to shareholders that earnings have stabilized," said Yasuhiro Matsumoto, an analyst in Tokyo at Shinsei Securities Co. "It won't be welcomed by everyone. Some investors may argue that the money should be used to invest in the business."

The airline raised its full-year sales and profit forecasts last month. It predicts sales will rise 26 percent this business year to ¥50 billion and a net income of ¥2.7 billion, compared with a loss a year earlier.

The carrier has lost money in all but two of the last 10 years, according to data compiled by Bloomberg.

"We should reward our shareholders by paying a dividend," said Nishikubo, Skymark's largest shareholder, with a 44.9 percent stake, according to data compiled by Bloomberg.