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 a 10.0 percent increase in traffic on a 7.1 percent increase in capacity, resulting in a 2.2-point increase in load factor to 86.5 percent. Alaska also reported that 88.7 percent of its flights arrived on time in August 2010, a 3.0-point increase compared to the 85.7 percent reported in August 2009.

The following table shows the operational results for August 2010 and for the first eight months of 2010, compared to the prior-year periods:

                                  August                  Year-to-Date
                                  ------                  ------------
                           2010   2009   Change     2010    2009   Change
                           ----   ----   ------     ----    ----   ------
  Revenue passenger miles
      RPMs (in millions)  1,957  1,779      10.0% 13,488  12,362       9.1%
  Available seat miles
      ASMs (in millions)  2,263  2,112       7.1% 16,189  15,607       3.7%
  Passenger load factor    86.5%  84.3%   2.2pts    83.3%   79.2%   4.1pts
  Revenue passengers (in
   thousands)             1,602  1,498       6.9% 11,032  10,561       4.5%
  On-time arrivals as
   reported
    to U.S. DOT            88.7%  85.7%   3.0pts    88.6%   81.0%   7.6pts
    -----------            ----   ----    ------    ----    ----    ------


  HORIZON AIR

Horizon reported a 2.2 percent increase in traffic on a 1.1 percent decline in capacity compared to August 2009, resulting in a 2.7-point increase in load factor to a record 81.9 percent. Horizon also reported that 80.5 percent of its flights arrived on time in August 2010, an 8.1-point decrease compared to the 88.6 percent reported in August 2009.

The following table shows the operational results for August 2010 and for the first eight months of 2010, compared to the prior-year periods:

                               August                  Year-to-Date
                               ------                  ------------
                         2010  2009    Change    2010   2009    Change
                         ----  ----    ------    ----   ----    ------
  RPMs (in millions)      234   229        2.2% 1,664  1,601        4.0%
  ASMs (in millions)      286   289      (1.1)% 2,208  2,200        0.3%
  Passenger load factor  81.9% 79.2%    2.7pts   75.4%  72.8%    2.6pts
  Revenue passengers (in
   thousands)             640   622        2.9% 4,575  4,499        1.7%
  On-time arrivals       80.5% 88.6%  (8.1)pts   87.2%  85.9%    1.3pts
  ----------------       ----  ----   --------   ----   ----     ------

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, 2009 and 2010 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.