Alaska Air Group Reports August Traffic

Alaska Air Group, Inc. today reported August operational results for its subsidiaries, Alaska Airlines (Alaska) and Horizon Air (Horizon).

ALASKA AIRLINES

Alaska reported an increase in load factor to 84.3 percent in August 2009, compared to 82.5 percent in August 2008, on a 2.9 percent decline in available seat miles (ASMs) compared to the prior-year period. Alaska also reported that 85.7 percent of its flights arrived on time in August 2009, a 7.0-point increase compared to the 78.7 percent reported in August 2008. The following tables show the operational results for August 2009 and for the first eight months of 2009, compared to the prior-year periods:

                                  August                  Year-to-Date
                                  ------                  ------------
                            2009   2008  Change       2009    2008  Change
                            ----   ----  ------       ----    ----  ------
  Revenue passenger miles
      RPMs (000,000)       1,779  1,793  (0.8)%     12,362  12,980  (4.8)%
  Available seat  miles
      ASMs (000,000)       2,112  2,174  (2.9)%     15,607  16,741  (6.8)%
  Passenger load factor     84.3%  82.5% 1.8pts       79.2%   77.5% 1.7pts
  Revenue passengers (000) 1,498  1,619  (7.5)%     10,561  11,742  (10.1)%
  On-time arrivals as
   Reported to U.S. DOT     85.7%  78.7% 7.0pts       81.0%   78.3% 2.7pts
   -----------              ----   ----  ------       ----    ----  ------

  HORIZON AIR

Horizon reported an increase in load factor to 79.2 percent in August 2009, compared to 78.1 percent in August 2008, on a 12.9 percent decline in capacity compared to the prior-year period. Horizon reported that 88.6 percent of its flights arrived on time in August 2009, a 4.6-point increase compared to the 84.0 percent reported in August 2008. The following tables show the operational results for August 2009 and for the first eight months of 2009, compared to the prior-year periods:

                                August                  Year-to-Date
                                ------                  ------------
                          2009   2008  Change       2009   2008   Change
                          ----   ----  ------       ----   ----   ------
  RPMs (000,000)           229    260  (11.7)%     1,601   1,873  (14.5)%
  ASMs (000,000)           289    332  (12.9)%     2,200   2,554  (13.9)%
  Passenger load factor   79.2%  78.1% 1.1pts       72.8%   73.3% (0.5)pts
  Revenue passengers (000) 622    699  (11.0)%     4,499   5,170  (13.0)%
  On-time arrivals        88.6%  84.0% 4.6pts       85.9%   84.4% 1.5pts
  ----------------        ----   ----  ------       ----    ----  ------

Alaska Airlines and Horizon Air, subsidiaries of Alaska Air Group , together serve more than 90 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. Alaska Airlines ranked "Highest in Customer Satisfaction Among Traditional Network Carriers" in the J.D. Power and Associates 2008 and 2009 North America Airline Satisfaction Studies(SM). 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.