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 decreased 1.0...

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 decreased 1.0 percent to 1.793 billion revenue passenger miles (RPMs) from 1.812 billion flown a year earlier. Capacity during August was 2.174 billion available seat miles (ASMs), slightly lower than the 2.175 billion in August 2007.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 82.5 percent, compared to 83.3 percent in August 2007. The airline carried 1,619,300 passengers, compared to 1,751,700 in August 2007.

RPMs for the eight-month period totaled 12.980 billion, a 3.6 percent increase from the 12.526 billion recorded a year earlier. Capacity for the eight months ended August 2008 increased 3.3 percent to 16.741 billion ASMs, compared to 16.200 billion in 2007.

The passenger load factor for the first eight months of 2008 was 77.5 percent, compared to 77.3 percent in 2007. The airline carried 11,742,200 passengers, compared to 11,975,900 in 2007.

HORIZON AIR

Horizon’s August traffic decreased 14.7 percent to 259.6 million RPMs from 304.5 million flown a year earlier. Capacity for August was 332.2 million ASMs, 12.8 percent lower than the 381.1 million in August 2007.

The passenger load factor for the month was 78.1 percent, compared to 79.9 percent in August 2007. The airline carried 699,300 passengers, compared to 762,300 in August 2007.

RPMs for the eight-month period totaled 1.873 billion, a 4.2 percent decrease from the 1.956 billion recorded a year earlier. Capacity for the eight months ended August 2008 decreased 3.5 percent to 2.554 billion ASMs, compared to 2.648 billion in 2007.

The passenger load factor for the first eight months of 2008 was 73.3 percent, compared to 73.9 percent in 2007. The airline carried 5,169,700 passengers, compared to 5,012,000 in 2007.

Alaska Airlines and Horizon Air together serve 95 cities through an expansive network throughout 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: barb.johnson@alaskaair.com

SOURCE: Alaska Air Group, Inc.

CONTACT: Media, Caroline Boren, Managing Director of Strategic and
Corporate Communications, +1-206-392-5134, or Investors|Analysts, Shannon
Alberts, Managing Director of Investor Relations, +1-206-392-5218, both of
Alaska Air Group, Inc.