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 6.3 percent to 1.561 billion revenue passenger miles (RPMs) from 1.469 billion flown a year earlier. Capacity during December was 2.059 billion available seat miles (ASMs), 5.2 percent higher than the 1.957 billion in December 2006.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 75.8 percent, compared to 75.1 percent in December 2006. The airline carried 1,434,600 passengers, compared to 1,412,400 in December 2006.

RPMs for the 12-month period totaled 18.451 billion, a 3.5 percent increase from the 17.822 billion recorded a year earlier. Capacity for the 12 months ended December 2007 increased 4.0 percent to 24.208 billion ASMs, compared to 23.278 billion in 2006.

The passenger load factor for the 12 months of 2007 was 76.2 percent, compared to 76.6 percent in 2006. The airline carried 17,558,000 passengers, compared to 17,164,500 in 2006.

HORIZON AIR

Horizon’s December traffic increased 7.8 percent to 232.6 million RPMs from 215.8 million flown a year earlier. Capacity during December was 321.2 million ASMs, 7.8 percent higher than the 298.0 million in December 2006.

The passenger load factor for the month was 72.4 percent, unchanged from December 2006. The airline carried 637,000 passengers, compared to 553,200 in December 2006. December 2006 statistics include Frontier JetExpress flying, but December 2007 statistics represent only Horizon’s network flying because the Frontier JetExpress agreement ended in November 2007.

Horizon’s RPMs for the 12-month period totaled 2.918 billion, an 8.4 percent increase from the 2.691 billion recorded a year earlier. Capacity for the 12 months ended December 2007 increased 9.5 percent to 3.978 billion ASMs, compared to 3.632 billion in 2006.

The total passenger load factor for the 12 months of 2007 was 73.4 percent, compared to 74.1 percent in 2006. The airline carried 7,552,200 passengers, compared to 6,859,500 in 2006.

RPMs for the 12-month period for Horizon’s network flying (which excludes those flights operated as Frontier JetExpress), totaled 2.554 billion, a 22.1 percent increase from the 2.092 billion recorded a year earlier. Capacity for the 12 months ended December 2007 increased 23.5 percent to 3.469 billion ASMs, compared to 2.810 billion in 2006.

Alaska Airlines and Horizon Air together serve 92 cities through an expansive network in 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: maria.koenig@alaskaair.com

SOURCE: Alaska Air Group, Inc.