Alaska Air Group Reports August Traffic

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

ALASKA AIRLINES

Alaska’s August traffic increased 5.4 percent to 1.812 billion revenue passenger miles (RPMs) from 1.719 billion flown a year earlier. Capacity during August was 2.175 billion available seat miles (ASMs), 2.3 percent higher than the 2.127 billion in August 2006.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 83.3 percent, compared to 80.8 percent in August 2006. The airline carried 1,751,700 passengers, compared to 1,669,800 in August 2006.

RPMs for the eight-month period totaled 12.526 billion, a 2.9 percent increase from the 12.176 billion recorded a year earlier. Capacity for the eight months ended August 2007 increased 3.7 percent to 16.200 billion ASMs, compared to 15.616 billion in 2006.

The passenger load factor for the first eight months of 2007 was 77.3 percent, compared to 78.0 percent in 2006. The airline carried 11,975,900 passengers, compared to 11,692,300 in 2006.

HORIZON AIR

Horizon’s August traffic increased 19.8 percent to 304.6 million RPMs from 254.3 million flown a year earlier. Capacity during August was 381.1 million ASMs, 15.3 percent higher than the 330.6 million in August 2006.

The passenger load factor for the month was 79.9 percent, compared to 76.9 percent in August 2006. The airline carried 762,500 passengers, compared to 638,000 in August 2006.

RPMs for the eight-month period totaled 1.957 billion, a 7.9 percent increase from the 1.813 billion recorded a year earlier. Capacity for the eight months ended August 2007 increased 9.1 percent to 2.648 billion ASMs, compared to 2.427 billion in 2006.

The passenger load factor for the first eight months of 2007 was 73.9 percent, compared to 74.7 percent in 2006. The airline carried 5,012,200 passengers, compared to 4,604,300 in 2006.

For Horizon’s network flying (which excludes those flights operated as Frontier JetExpress), August traffic increased 29.5 percent to 266.7 million RPMs from 206.0 million flown a year earlier. Capacity during August was 334.4 million ASMs, 26.6 percent higher than the 264.1 million in August 2006.

The passenger load factor for the month was 79.8 percent, compared to 78.0 percent in August 2006. The airline carried 695,400 passengers, compared to 557,200 in August 2006.

RPMs for the eight-month period totaled 1.670 billion, a 19.9 percent increase from the 1.393 billion recorded a year earlier. Capacity for the eight months ended August 2007 increased 19.8 percent to 2.241 billion ASMs, compared to 1.870 billion in 2006.

The passenger load factor for the first eight months of 2007 was 74.5 percent, unchanged from the first eight months of 2006. The airline carried 4,537,100 passengers in network flying, compared to 3,947,100 in 2006.

Horizon’s total RPMs, passenger load factor and passengers are reported using actual August 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.