Chairman and CEO Glenn Tilton said the distribution underscores the company's commitment to its investors.

"On behalf of our board of directors, we are pleased to make this decision to provide a distribution to our shareholders while strengthening our balance sheet and investing in our business," he said in a statement. In a message to employees, Tilton noted that the $250 million includes $20 million to employee shareholders.

United's unions are clamoring for more of the company's cash to be distributed to employees who took steep pay cuts in bankruptcy, and less given out to shareholders and in high executive pay.

"We compete for shareholders just as we compete for customers. Building a successful, sustainable enterprise, and providing a return on investment, is what shareholders expect and deserve," he said.

Union officials immediately criticized the distribution.

"The best shareholder initiative would be one that invests in the employees for the long-term success of the airline," said Greg Davidowitch, president of the Association of Flight Attendants at United.

The pilots' union called the plan "ludicrous."

"Management has now told us that they will value their own interests and short-term shareholder returns over anything else — over stronger employee motivation and engagement, over a better customer experience, over the long-term health of the company," said Mark Bathurst, head of the United branch of the Air Line Pilots Association.

But the action was viewed positively on Wall Street, where Morgan Stanley analyst William Greene said it confirms United's management is living up to its pledge to be shareholder-friendly.

"We believe that the market will likely now give more credit to the company's indications of intent to divest noncore assets, which could further benefit shareholders and act as a catalyst for the shares," he said in a research note.

The $2.15-per-share payment will be distributed on Jan. 23 to UAL Corp. shareholders as of Jan. 9.

UAL said it paid down $500 million of a term loan under an unspecified credit agreement. Since exiting bankruptcy, the company has reduced its total net debt by $2.7 billion as of the third quarter's end.