Alaska Air Group Reports December Traffic

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

ALASKA AIRLINES

Alaska’s December traffic increased 2.0 percent to 1.469 billion revenue passenger miles (RPMs) from 1.440 billion flown a year earlier. Capacity during December was 1.957 billion available seat miles (ASMs), 3.1 percent higher than the 1.898 billion in December 2005.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 75.1 percent, compared to 75.9 percent in December 2005. The airline carried 1,412,400 passengers, compared to 1,398,900 in December 2005.

RPMs for the 12-month period totaled 17.822 billion, a 5.4 percent increase from the 16.915 billion recorded a year earlier. Capacity for the 12 months ended December 2006 increased 4.4 percent to 23.278 billion ASMs, compared to 22.292 billion in 2005.

The passenger load factor for the 12 months of 2006 was 76.6 percent, compared to 75.9 percent in 2005. The airline carried 17,164,500 passengers, compared to 16,758,900 in 2005.

HORIZON AIR

Horizon’s December traffic decreased 0.6 percent to 216.0 million RPMs from 217.4 million flown a year earlier. Capacity during December was 298.0 million ASMs, 2.8 percent higher than the 289.9 million in December 2005.

The passenger load factor for the month was 72.5 percent, compared to 75.0 percent in December 2005. The airline carried 553,500 passengers, compared to 551,900 in December 2005.

RPMs for the 12-month period totaled 2.692 billion, an 8.8 percent increase from the 2.475 billion recorded a year earlier. Capacity for the 12 months ended December 2006 increased 6.8 percent to 3.632 billion ASMs, compared to 3.400 billion in 2005.

The passenger load factor for the first 12 months of 2006 was 74.1 percent, compared to 72.8 percent in 2005. The airline carried 6,859,800 passengers, compared to 6,497,800 in 2005.

Horizon’s RPMs, passenger load factor and passengers are reported using actual December 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 sister carrier, Horizon Air, together serve 89 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.