Alaska Air Group Reports July Traffic

Alaska Air Group, Inc. today reported July passenger traffic for its subsidiaries, Alaska Airlines (Alaska) and Horizon Air (Horizon). ALASKA AIRLINES Alaska's July traffic increased 7.3 percent...

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

ALASKA AIRLINES

Alaska’s July traffic increased 7.3 percent to 1.752 billion revenue passenger miles (RPMs) from 1.633 billion flown a year earlier. Capacity during July was 2.116 billion available seat miles (ASMs), 6.6 percent higher than the 1.986 billion in July 2005.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 82.8 percent, compared to 82.2 percent in July 2005. The airline carried 1,674,300 passengers, compared to 1,633,500 in July 2005.

RPMs for the seven-month period totaled 10.457 billion, a 6.2 percent increase from the 9.846 billion recorded a year earlier. Capacity for the seven months ended July 2006 increased 4.6 percent to 13.489 billion ASMs, compared to 12.899 billion in 2005.

The passenger load factor for the first seven months of 2006 was 77.5 percent, compared to 76.3 percent in 2005. The airline carried 10,022,400 passengers, compared to 9,716,800 in 2005.

HORIZON AIR

Horizon’s July traffic increased 4.8 percent to 249.0 million RPMs from 237.7 million flown a year earlier. Capacity during July was 318.8 million ASMs, 2.9 percent higher than the 309.8 million in July 2005.

The passenger load factor for the month was 78.1 percent, compared to 76.7 percent in July 2005. The airline carried 627,300 passengers, compared to 610,200 in July 2005.

RPMs for the seven-month period totaled 1.559 billion, an 11.6 percent increase from the 1.397 billion recorded a year earlier. Capacity for the seven months ended July 2006 increased 8.0 percent to 2.097 billion ASMs, compared to 1.941 billion in 2005.

The passenger load factor for the first seven months of 2006 was 74.3 percent, compared to 72.0 percent in 2005. The airline carried 3,966,400 passengers, compared to 3,723,100 in 2005.

Horizon’s RPMs, passenger load factor and passengers are reported using actual operating data for flights operated as Horizon Air combined with estimated July operating data for Horizon’s regional jet service operated as Frontier JetExpress.

Alaska Airlines and sister carrier, Horizon Air, together serve 88 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 http://newsroom.alaskaair.com/ .

SOURCE: Alaska Air Group, Inc.

CONTACT: media, Amanda Tobin Bielawski, Media Relations Manager,
+1-206-392-5134, or investors/analysts, Shannon Alberts, Managing Director of
Investor Relations, +1-206-392-5218, both of Alaska Air Group, Inc.