Alaska Air Group Reports First Quarter Results

Alaska Air Group, Inc. today reported a first quarter net loss of $79.1 million, or $2.36 per share, compared to a net loss of $80.5 million, or $2.39 per diluted share, in the first quarter of...

Alaska Air Group, Inc. today reported a first quarter net loss of $79.1 million, or $2.36 per share, compared to a net loss of $80.5 million, or $2.39 per diluted share, in the first quarter of 2005. The 2006 results include an impairment charge on the company’s MD-80 fleet of $131.1 million ($81.9 million, after tax, or $2.44 per share) resulting from the decision to transition to an all- Boeing 737 aircraft fleet type. Both periods include mark-to-market fuel hedge accounting gains and losses, and the first quarter of 2005 includes a charge related to the cumulative effect of a maintenance accounting policy change and restructuring charges that also impact the comparability of the periods. Excluding the impact of the items noted above, the company would have reported net income in the first quarter of 2006 of $2.8 million, or $0.08 per share, compared to a net loss of $41.7 million, or $1.54 per share, in the first quarter of 2005.

"We’re very pleased to report an adjusted net profit for what is seasonally our weakest quarter," said Bill Ayer, chairman and chief executive officer. "Our people are working hard to provide excellent value for our customers and improve efficiency. Add to that a fare environment that allows us to recover a greater portion of our high fuel costs, and we’ve got a great start to the year."

Last month, Alaska announced that it was investing $750 million to replace its MD-80s and move to a single fleet type by the end of 2008. As a result of this strategic decision, the company wrote down the value of its owned MD-80 fleet to estimated market value, recording a non-cash charge of $131.1 million. Separately, the company expects to make cash payments totaling $130 million to $150 million to terminate MD-80 leases before the end of the lease term. These costs will be recorded in future periods. "While this investment is substantial, it represents an important step toward ensuring our long-term competitiveness," said Ayer.

Alaska Airlines’ passenger traffic in the first quarter increased 4.7 percent on a capacity increase of 3.1 percent. Alaska’s load factor increased 1.1 percentage points to 73.7 percent, compared to the same period in 2005. Alaska’s operating revenue per available seat mile (ASM) increased 9.3 percent, while its operating cost per ASM excluding fuel, impairment of aircraft and restructuring charges and adjustments decreased 6.8 percent. Alaska’s pretax loss for the quarter was $124.7 million, compared to income before taxes and the accounting change of $15.4 million in 2005. Excluding the items noted above, Alaska would have reported pretax income of $7.6 million for the quarter, compared to a pretax loss of $54.9 million in the first quarter of 2005.

Horizon Air’s passenger traffic in the first quarter increased 14.8 percent on a 12.1 percent capacity increase. Horizon’s load factor increased by 1.7 percentage points to 70.7 percent, compared to the same period in 2005. Horizon’s operating revenue per ASM increased 7.6 percent, and its operating cost per ASM excluding fuel decreased 0.1 percent. Horizon’s pretax loss for the quarter was $0.4 million, compared to income before taxes and the accounting change of $4.6 million in 2005. Excluding the mark-to-market fuel hedge adjustments, Horizon’s pretax loss was $1.6 million for the quarter, compared to $7.7 million in the first quarter of 2005.

Alaska Air Group had cash and short-term investments at March 31, 2006, of approximately $1.0 billion compared to $983 million at Dec. 31, 2005. The company’s debt-to-capital ratio, assuming aircraft operating leases are capitalized at seven times annualized rent, was 76 percent as of March 31, 2006, compared to 73 percent as of Dec. 31, 2005.

A summary of financial and statistical data for Alaska Airlines and Horizon Air, as well as a reconciliation of the reported non-GAAP financial measures, can be found on pages 6 through 10.

A conference call regarding the first quarter 2006 results will be simulcast via the Internet at 9:30 a.m. Pacific Time on April 20, 2006. It may be accessed through the company’s Web site at alaskaair.com. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call at alaskaair.com.

This report contains forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or our future financial performance and involve known and unknown risks and uncertainties that may cause our actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward- looking statements by terminology such as "forecast," "may," "will," "could," "should," "expect," "plan," "believe," "potential" or other similar words indicating future events or contingencies. Some of the things that could cause our actual results to differ from our expectations are: the competitive environment and other trends in our industry; changes in our operating costs including fuel, which can be volatile; our ability to meet our cost reduction goals; our inability to achieve or maintain profitability and fluctuations in our quarterly results; our significant indebtedness; our inability to secure new aircraft financing; the implementation of our growth strategy; the timing of the MD-80 fleet disposal, the market value of MD-80 aircraft, and the amounts of potential lease termination payments with lessors and sublease payments from sub lessees; compliance with our financial covenants; potential downgrades of our credit ratings and the availability of financing; the concentration of our revenue from a few key markets; general economic conditions, as well as economic conditions in the geographic regions we serve; actual or threatened terrorist attacks; global instability and potential U.S. military actions or activities; insurance costs; labor disputes; our ability to attract and retain qualified personnel; an aircraft accident or incident; liability and other claims asserted against us; operational disruptions; increases in government fees and taxes; changes in laws and regulations; our reliance on automated systems; and our reliance on third-party vendors and partners. For a discussion of these and other risk factors, see Item 1A of the Company’s Annual Report on Form 10-K for the year ended Dec. 31, 2005. All of the forward- looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We disclaim any obligation to publicly update or revise any forward-looking statements after the date of this press release to conform them to actual results.

Alaska Airlines and sister carrier, Horizon Air, together serve 88 cities through an expansive network throughout Alaska, the Lower 48, Canada and Mexico. For reservations visit alaskaair.com. For more news and information, visit the Alaska Airlines/Horizon Air newsroom at http://newsroom.alaskaair.com/ .

                            ALASKA AIR GROUP, INC.

  CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
  (In Millions Except Per Share Amounts)

                                                            Three Months
                                                           Ended March 31

                                                           2006      2005
  Operating Revenues:
  Passenger                                              $679.5    $587.0
  Freight and mail                                         21.4      20.3
  Other - net                                              34.5      35.2
  Total Operating Revenues                                735.4     642.5

  Operating Expenses:
  Wages and benefits                                      223.2     240.6
  Variable incentive pay                                    8.5       4.1
  Contracted services                                      36.7      30.6
  Aircraft fuel, including hedging gains and losses       163.1      38.5
  Aircraft maintenance                                     61.2      61.2
  Aircraft rent                                            46.6      46.1
  Food and beverage service                                11.5      11.5
  Selling expenses                                         40.0      37.4
  Depreciation and amortization                            36.9      34.2
  Landing fees and other rentals                           49.0      52.2
  Other                                                    52.8      51.4
  Impairment of aircraft                                  131.1        --
  Restructuring charges and adjustments                      --       7.4
  Total Operating Expenses                                860.6     615.2
  Operating Income (Loss)                                (125.2)     27.3

  Nonoperating Income (Expense):
  Interest income                                          11.1       5.9
  Interest expense                                        (19.1)    (14.1)
  Interest capitalized                                      4.7       0.8
  Other - net                                              (0.9)     (2.9)
                                                           (4.2)    (10.3)
  Income (loss) before income tax and accounting change  (129.4)     17.0
  Income tax expense (benefit)                            (50.3)      7.1
  Income (loss) before accounting change                 $(79.1)     $9.9
  Cumulative effect of accounting change, net of tax         --     (90.4)
  Net Loss                                               $(79.1)   $(80.5)
  Basic Earnings (Loss) Per Share:
   Income (loss) before accounting change                $(2.36)    $0.36
   Cumulative effect of accounting change                    NA     (3.33)
   Net Loss Per Share                                    $(2.36)   $(2.97)
  Diluted Earnings (Loss) Per Share:
   Income (loss) before accounting change                $(2.36)    $0.34
   Cumulative effect of accounting change                    NA     (2.73)
   Net Loss Per Share                                    $(2.36)   $(2.39)
  Shares Used for Computation:
  Basic                                                  33.464    27.147
  Diluted                                                33.464    33.158


                            Alaska Air Group, Inc.

  CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

                                                 March 31,   December 31,
  (In Millions)                                       2006           2005

  Cash and marketable securities                    $1,012           $983

  Total current assets                              $1,601         $1,540
  Property and equipment-net                         2,039          2,032
  Other assets                                         248            220
  Total assets                                      $3,888         $3,792

  Current liabilities                               $1,331         $1,165
  Long-term debt and capital lease obligations       1,027            969
  Other liabilities and credits                        779            830
  Shareholders' equity                                 751            828
  Total liabilities and shareholders' equity        $3,888         $3,792


                Alaska Airlines Financial and Statistical Data

                                                    Quarter Ended March 31
                                                                      %
  Financial Data (in millions):                     2006     2005  Change
  Operating Revenues:
  Passenger                                       $536.8   $471.3    13.9
  Freight and mail                                  20.5     19.3     6.2
  Other - net                                       32.7     32.7     0.0
  Total Operating Revenues                         590.0    523.3    12.7

  Operating Expenses:
  Wages and benefits                               175.7    196.9   (10.8)
  Variable incentive pay                             6.4      2.8   128.6
  Contracted services                               31.9     27.8    14.7
  Aircraft fuel, including
   hedging gains and losses                        142.0     34.2   315.2
  Aircraft maintenance                              44.3     50.1   (11.6)
  Aircraft rent                                     29.3     28.4     3.2
  Food and beverage service                         10.8     10.9    (0.9)
  Selling expenses                                  33.2     32.7     1.5
  Depreciation and amortization                     32.2     30.3     6.3
  Landing fees and other rentals                    38.4     40.6    (5.4)
  Other                                             39.0     38.4     1.6
  Impairment of aircraft                           131.1       --      NM
  Restructuring charges and adjustments               --      7.4      NM
  Total Operating Expenses                         714.3    500.5    42.7

  Operating Income (Loss)                         (124.3)    22.8      NM

  Interest income                                   11.8      6.3
  Interest expense                                 (15.8)   (11.5)
  Interest capitalized                               4.3      0.7
  Other - net                                       (0.7)    (2.9)
                                                    (0.4)    (7.4)

  Income (Loss) Before Income Tax
   and Accounting Change                         $(124.7)   $15.4      NM

  Operating Statistics:
  Revenue passengers (000)                         3,905    3,851     1.4
  RPMs (000,000)                                   4,080    3,897     4.7
  ASMs (000,000)                                   5,539    5,370     3.1
  Passenger load factor                            73.7%    72.6%  1.1pts
  Yield per passenger mile (in cents)              13.16    12.09     8.8
  Operating revenue per ASM (in cents)             10.65     9.74     9.3
  Operating expenses per ASM (a) (in cents)        12.90     9.32    38.4
  Operating expense per ASM excluding fuel,
   impairment of aircraft, and restructuring
   charges and adjustments (a) (in cents)           7.97     8.55    (6.8)
  GAAP fuel cost per gallon (a)                    $1.68    $0.41   313.7
  Economic fuel cost per gallon (a)                $1.67    $1.33    25.4
  Fuel gallons (000,000)                            84.5     84.2     0.4
  Average number of full-time
   equivalent employees                            8,988    9,219    (2.5)
  Aircraft utilization (blk hrs/day)                11.0     10.7     2.8
  Average aircraft stage length (miles)              921      897     2.7
  Operating fleet at period-end                      113      109     3.7

  NM = Not Meaningful

  (a) See Note A following.


                  Horizon Air Financial and Statistical Data

                                                    Quarter Ended March 31
                                                                      %
  Financial Data (in millions):                     2006    2005   Change
  Operating Revenues:
  Passenger                                       $143.8  $117.7    22.2
  Freight and mail                                   0.9     1.0   (10.0)
  Other - net                                        1.5     2.5   (40.0)
  Total Operating Revenues                         146.2   121.2    20.6

  Operating Expenses:
  Wages and benefits                                46.5    41.9    11.0
  Variable incentive pay                             2.1     1.3    61.5
  Contracted services                                6.1     5.5    10.9
  Aircraft fuel, including
   hedging gains and losses                         21.1     4.3   390.7
  Aircraft maintenance                              16.9    11.1    52.3
  Aircraft rent                                     17.3    17.7    (2.3)
  Food and beverage service                          0.7     0.6    16.7
  Selling expenses                                   8.1     6.7    20.9
  Depreciation and amortization                      4.4     3.6    22.2
  Landing fees and other rentals                    10.9    11.8    (7.6)
  Other                                             11.8    11.3     4.4
  Total Operating Expenses                         145.9   115.8    26.0

  Operating Income                                   0.3     5.4      NM

  Interest income                                    0.7     0.3
  Interest expense                                  (1.8)   (1.2)
  Interest capitalized                               0.4     0.1
  Other - net                                         --      --
                                                    (0.7)   (0.8)

  Income (Loss) Before Income Tax
   and Accounting Change                           $(0.4)   $4.6      NM

  Operating Statistics:
  Revenue passengers (000)                         1,594   1,475     8.1
  RPMs (000,000)                                     620     540    14.8
  ASMs (000,000)                                     877     782    12.1
  Passenger load factor                            70.7%   69.0%  1.7pts
  Yield per passenger mile (in cents)              23.19   21.82     6.3
  Operating revenue per ASM (in cents)             16.67   15.50     7.6
  Operating expenses per ASM (a) (in cents)        16.64   14.80    12.4
  Operating expense per ASM
   excluding fuel (a) (in cents)                   14.23   14.25    (0.1)
  GAAP fuel cost per gallon (a)                    $1.64   $0.36   356.5
  Economic fuel cost per gallon (a)                $1.73   $1.38    25.4
  Fuel gallons (000,000)                            12.9    12.0     7.5
  Average number of full-time
   equivalent employees                            3,538   3,363     5.2
  Aircraft utilization (blk hrs/day)                 8.8     8.4     4.8
  Operating fleet at period-end                       69      66     4.5

  NM = Not Meaningful

  (a) See Note A following.


  Note A:
  Pursuant to Item 10 of Regulation S-K, we are providing disclosure of the
  reconciliation of reported non-GAAP financial measures to their most
  directly comparable financial measures reported on a GAAP basis. The non-
  GAAP financial measures provide management the ability to measure and
  monitor performance both with and without the cost of aircraft fuel
  (including the gains and losses associated with our fuel hedging program
  where appropriate), aircraft impairment charges, and restructuring charges
  and adjustments. Because the cost and availability of aircraft fuel are
  subject to many economic and political factors beyond our control and we
  record changes in the fair value of our hedge portfolio in our income
  statement, it is our view that the measurement and monitoring of
  performance without fuel is important. In addition, we believe the
  disclosure of financial performance without impairment and restructuring
  charges is useful to investors. Finally, these non-GAAP financial measures
  are also more comparable to financial measures reported to the Department
  of Transportation by other major network airlines.
  The following tables reconcile our non-GAAP financial measures to the most
  directly comparable GAAP financial measures for both Alaska Airlines, Inc.
  and Horizon Air Industries, Inc.:

  Alaska Airlines, Inc.:
  ($ in millions)                 Three Months Ended March 31,

  Unit cost reconciliations:              2006     2005
  Operating expenses                    $714.3   $500.5
  ASMs (000,000)                         5,539    5,370
  Operating expenses per ASM (in cents)  12.90     9.32

  Operating expenses                    $714.3   $500.5
  Less: aircraft fuel                   (142.0)   (34.2)
  Less: impairment of aircraft          (131.1)      --
  Less: restructuring charges
   and adjustments                          --     (7.4)
  Operating expenses excluding fuel,
   impairment of aircraft, and
   restructuring charges
   and adjustments                      $441.2   $458.9
  ASMs (000,000)                         5,539    5,370
  Operating expenses per ASM
   excluding fuel, impairment of
   aircraft, and restructuring
   charges and adjustments (in cents)     7.97     8.55

  Reconciliation to GAAP income (loss)
   before taxes and accounting change:
  Income (loss) before taxes and
   accounting change, excluding
   mark-to-market hedging gains
   (losses), impairment of aircraft,
   and restructuring charges
   and adjustments                        $7.6   $(54.9)
  Mark-to-market hedging gains
   (losses) included in aircraft fuel     (1.2)    77.7
  Less: impairment of aircraft          (131.1)      --
  Less: restructuring charges
   and adjustments                          --     (7.4)
  GAAP income (loss) before taxes
   and accounting change as reported   $(124.7)   $15.4

  Aircraft fuel reconciliations:*
                                            Three Months Ended March 31,
                                              2006              2005
                                        (000s)   Cost/Gal  (000s) Cost/Gal
  GAAP fuel expense**                   $142.0    $1.68    $34.2   $0.41
  Add: mark-to-market gains (losses)
   related to hedges that settle in
   future periods, net of the
   reclassification of previously
   recorded mark-to-market gains
   on settled hedges                      (1.2)   (0.01)    77.7    0.92
  Economic fuel expense                 $140.8    $1.67   $111.9   $1.33
  Fuel gallons (000,000)                  84.5              84.2

  * Beginning this quarter, the Company is recording all fuel hedging
  activity, including mark-to-market gains and losses, in aircraft fuel
  expense. Prior year amounts have been reclassified for consistency.
  ** Includes $25.8 million and $19.1 million in 2006 and 2005,
  respectively, of gains on hedges that settled during the reported period.


  Horizon Air Industries, Inc.
  ($ in millions)                   Three Months Ended March 31,

  Unit cost reconciliations:               2006     2005
  Operating expenses                      $145.9   $115.8
  ASMs (000,000)                             877      782
  Operating expenses per ASM (in cents)    16.64    14.80

  Operating expenses                      $145.9   $115.8
  Less: aircraft fuel                      (21.1)    (4.3)
  Operating expenses excluding fuel       $124.8   $111.5
  ASMs (000,000)                             877      782
  Operating expenses per ASM
   excluding fuel (in cents)               14.23    14.25

  Reconciliation to GAAP income (loss)
   before taxes and accounting
   change: Income (loss) before
   taxes and accounting change,
   excluding mark-to-market hedging
   gains (losses)                          $(1.6)   $(7.7)
  Mark-to-market hedging gains (losses)
   included in aircraft fuel                 1.2     12.3
  GAAP income (loss) before taxes
   and accounting change as reported       $(0.4)    $4.6

  Aircraft fuel reconciliations:*
                                              Three Months Ended March 31,
                                             2006              2005
                                           (000s) Cost/Gal (000s) Cost/Gal
  GAAP fuel expense**                      $21.1    $1.64   $4.3   $0.36
  Add: mark-to-market gains related
   to hedges that settle in future
   periods, net of the reclassification
   of previously recorded mark-to-market
   gains on settled hedges                   1.2     0.09   12.3    1.02
  Economic fuel expense                    $22.3    $1.73  $16.6   $1.38
  Fuel gallons (000,000)                    12.9            12.0

  * Beginning this quarter, the Company is recording all fuel hedging
  activity, including mark-to-market gains and losses, in aircraft fuel
  expense. Prior year amounts have been reclassified for consistency.
  ** Includes $4.2 million and $2.9 million in 2006 and 2005, respectively,
  of gains on hedges that settled during the reported period.


  Air Group Net Income (Loss) and EPS Reconciliation:

  The following table summarizes Alaska Air Group, Inc.'s net income (loss)
  and earnings per share during 2006 and 2005 excluding the cumulative
  effect of the accounting change, mark-to-market hedging gains net of
  related reclassifications, impairment of aircraft, and restructuring
  charges and adjustments, as reported in accordance with GAAP (in millions
  except per share amounts):

                                       Three Months Ended March 31,
                                       2006                  2005
                                 Dollars  Diluted EPS  Dollars  Diluted EPS
  Net income (loss) and diluted
   EPS excluding the cumulative
   effect of the accounting
   change, mark-to-market
   hedging gains, impairment
   of aircraft and restructuring
   charges and adjustments *      $2.8       $0.08    $(41.7)     $(1.54)
  Effect of dilutive shares and
   interest on convertible bonds *  --          --        NA        0.32
  Cumulative effect of
   accounting change, net of tax    --          --     (90.4)      (2.73)
  Mark-to-market hedging gains,
   net of tax                       --          --      56.2        1.69
  Impairment of aircraft,
   net of tax                    (81.9)      (2.44)       --          --
  Restructuring charges and
   adjustments, net of tax          --          --      (4.6)      (0.13)
  Reported GAAP amounts         $(79.1)     $(2.36)   $(80.5)     $(2.39)


  *For the three months ended March 31, 2005, diluted loss per share
  excluding the impact of the accounting change, mark-to-market hedging
  gains, restructuring and impairment charges has been calculated using the
  weighted average number of shares oustanding (27.1 million at March 31,
  2005). This share count excludes the dilutive impact of stock awards and
  the contingently convertible senior notes as the impact would have been
  antidilutive (and thus excluded) if calculated based on a net loss of
  $41.7 million.

  In order to reconcile the diluted loss per share to the GAAP loss per
  share, the table above includes $0.32, which represents the impact of the
  additional shares that were used in the GAAP loss per share as well as
  $1.2 million of interest, net of tax, on the contingently convertible
  senior notes added back to earnings in order to derive the loss per share
  in accordance with GAAP.

  The per share impact of the change in accounting, mark-to-market gain on
  fuel hedges, restructuring and impairment charges have been presented in
  the table above assuming 33.2 million fully diluted shares outstanding.


  The following table summarizes Alaska Air Group, Inc.'s basic and diluted
  per share calculations for earnings before the accounting change and net
  loss (in millions except per share amounts):

                                               Three Months Ended March 31,
                                                     2006           2005

  Basic Earnings (Loss) Per Share:
  Income (loss) before accounting change            $(79.1)          $9.9
  Weighted average shares outstanding               33.464         27.147
   Income (loss) per share before
    accounting change                               $(2.36)         $0.36

  Cumulative effect of accounting
   change, net of tax                                   NA         $(90.4)
  Weighted average shares outstanding                   NA         27.147
   Per share cumulative effect of
    accounting change                                   NA         $(3.33)

  Net loss                                          $(79.1)        $(80.5)
  Weighted average shares outstanding               33.464         27.147
   Net loss per share                               $(2.36)        $(2.97)


  Diluted Earnings (Loss) Per Share:
  Income (loss) before accounting change            $(79.1)          $9.9
  Interest on convertible notes, net of tax             NA            1.2
  Income (loss) before accounting change
   for diluted calculation                          $(79.1)         $11.1
  Weighted average shares outstanding               33.464         33.158
   Income (loss) per share before
    accounting change                               $(2.36)         $0.34

  Cumulative effect of accounting change,
   net of tax                                           NA         $(90.4)
  Weighted average shares outstanding                   NA         33.158
   Per share cumulative effect of
    accounting change                                   NA         $(2.73)

  Net loss                                          $(79.1)        $(80.5)
  Interest on convertible notes, net of tax             NA            1.2
  Net loss for diluted calculation                  $(79.1)        $(79.3)
  Weighted average shares outstanding               33.464         33.158
   Net loss per share                               $(2.36)        $(2.39)


  Forecasted Financial Measures
  During our quarterly earnings conference call, we expect to discuss
  forward-looking forecasted unit cost information for 2006. This forecasted
  unit cost information includes non-GAAP unit cost estimates which are
  summarized in the following table together with the most directly
  comparable GAAP unit cost for both Alaska Airlines, Inc. and Horizon Air
  Industries, Inc.:

              Alaska Airlines                      Horizon Air
  -------------------------------------------------------------------------

                            Forecast                             Forecast
                            of total                             of total
                            operating                            operating
    Forecast of             cost per    Forecast of              cost per
    cost per                available   cost per                 available
    available  Forecast of  seat mile,  available  Forecast of   seat mile,
    seat mile,   fuel cost  as reported seat mile, fuel cost    as reported
    excluding per available on a GAAP   excluding  per available   on a
     fuel        seat mile  basis       fuel       seat mile     GAAP basis
    (cents)   (See Note 1)  (cents)     (cents)    (See Note 1)   (cents)


  Second
   quarter
   2006   7.9        2.8        10.7        14.1        3.0       17.1
  Third
   quarter
   2006   7.5        3.0        10.5        13.7        3.3       17.0
  Fourth
   quarter
   2006   7.5        3.1        10.6        14.4        3.4       17.8


  Note 1: Our forecast of fuel costs is based on anticipated gallons
  consumed and estimated fuel cost per gallon. The estimate also includes
  the expected benefit from settled hedges. Given the volatility of fuel
  prices and the mark-to-market adjustments on our fuel hedge portfolio,
  readers should be cautioned that actual fuel expense will likely differ
  from the forecast above.

SOURCE: Alaska Airlines

CONTACT: Brad Tilden, +1-206-392-5362, or Caroline Boren,
+1-206-392-5799, both of Alaska Air Group