Alaska Air Group Reports July Traffic

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

ALASKA AIRLINES

Alaska’s July traffic increased 4.3 percent to 1.828 billion revenue passenger miles (RPMs) from 1.752 billion flown a year earlier. Capacity during July was 2.191 billion available seat miles (ASMs), 3.5 percent higher than the 2.116 billion in July 2006.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 83.4 percent, compared to 82.8 percent in July 2006. The airline carried 1,734,800 passengers, compared to 1,674,300 in July 2006.

RPMs for the seven-month period totaled 10.714 billion, a 2.5 percent increase from the 10.457 billion recorded a year earlier. Capacity for the seven months ended July 2007 increased 4.0 percent to 14.025 billion ASMs, compared to 13.489 billion in 2006.

The passenger load factor for the first seven months of 2007 was 76.4 percent, compared to 77.5 percent in 2006. The airline carried 10,224,200 passengers, compared to 10,022,400 in 2006.

HORIZON AIR

Horizon’s July traffic increased 18.2 percent to 294.3 million RPMs from 248.9 million flown a year earlier. Capacity during July was 368.8 million ASMs, 15.7 percent higher than the 318.8 million in July 2006.

The passenger load factor for the month was 79.8 percent, compared to 78.1 percent in July 2006. The airline carried 732,000 passengers, compared to 627,100 in July 2006.

RPMs for the seven-month period totaled 1.651 billion, a 5.9 percent increase from the 1.559 billion recorded a year earlier. Capacity for the seven months ended July 2007 increased 8.1 percent to 2.267 billion ASMs, compared to 2.097 billion in 2006.

The passenger load factor for the first seven months of 2007 was 72.8 percent, compared to 74.3 percent in 2006. The airline carried 4,249,800 passengers, compared to 3,966,300 in 2006.

For Horizon’s network flying (which excludes those flights operated as Frontier JetExpress), July traffic increased 31.9 percent to 254.4 million RPMs from 192.9 million flown a year earlier. Capacity during July was 320.9 million ASMs, 28.3 percent higher than the 250.1 million in July 2006.

The passenger load factor for the month was 79.3 percent, compared to 77.1 percent in July 2006. The airline carried 662,700 passengers, compared to 531,300 in July 2006.

RPMs for the seven-month period totaled 1.403 billion, an 18.2 percent increase from the 1.187 billion recorded a year earlier. Capacity for the seven months ended July 2007 increased 18.8 percent to 1.907 billion ASMs, compared to 1.606 billion in 2006.

The passenger load factor for the first seven months of 2007 was 73.6 percent, compared to 73.9 percent in 2006. The airline carried 3,841,700 passengers, compared to 3,389,900 in 2006.

Horizon’s RPMs, passenger load factor and passengers are reported using actual July operating data for flights operated as Horizon Air combined with estimated operating data for Horizon’s regional jet service operated as Frontier JetExpress.

Alaska Airlines and Horizon Air together serve 92 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 alaskaair.com/newsroom.

First Call Analyst:
FCMN Contact: caroline.boren@alaskaair.com

SOURCE: Alaska Air Group, Inc.