Alaska Air Group Reports June Traffic

Alaska Air Group, Inc. today reported June passenger traffic for its subsidiaries, Alaska Airlines (Alaska) and Horizon Air (Horizon).

ALASKA AIRLINES

Alaska’s June traffic decreased 2.0 percent to 1.688 billion revenue passenger miles (RPMs) from 1.723 billion flown a year earlier. Capacity during June was 2.124 billion available seat miles (ASMs), 0.2 percent higher than the 2.119 billion in June 2007.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 79.5 percent, compared to 81.3 percent in June 2007. The airline carried 1,538,000 passengers, compared to 1,645,900 in June 2007.

RPMs for the six-month period totaled 9.398 billion, a 5.8 percent increase from the 8.886 billion recorded a year earlier. Capacity for the six months ended June 2008 increased 4.1 percent to 12.322 billion ASMs, compared to 11.834 billion in 2007.

The passenger load factor for the first six months of 2008 was 76.3 percent, compared to 75.1 percent in 2007. The airline carried 8,505,100 passengers, compared to 8,489,400 in 2007.

HORIZON AIR

Horizon’s June traffic decreased 4.2 percent to 248.5 million RPMs from 259.4 million flown a year earlier. Capacity for June was 318.7 million ASMs, 2.2 percent lower than the 325.9 million in June 2007.

The passenger load factor for the month was 78.0 percent, compared to 79.6 percent in June 2007. The airline carried 677,900 passengers, compared to 674,900 in June 2007.

RPMs for the six-month period totaled 1.353 billion, a 0.4 percent decrease from the 1.358 billion recorded a year earlier. Capacity for the six months ended June 2008 decreased 0.6 percent to 1.886 billion ASMs, compared to 1.898 billion in 2007.

The passenger load factor for the first six months of 2008 was 71.7 percent, compared to 71.5 percent in 2007. The airline carried 3,765,300 passengers, compared to 3,518,000 in 2007.

Alaska Airlines and Horizon Air together serve 94 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. For reservations, visit alaskaair.com. For more news and information, visit the Alaska Airlines/Horizon Air Newsroom at alaskaair.com/newsroom.

First Call Analyst:
FCMN Contact: maria.koenig@alaskaair.com

SOURCE: Alaska Air Group, Inc.