Alaska Air Group Reports July Traffic

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

ALASKA AIRLINES

Alaska reported an increase in load factor to 84.3 percent in July 2009, compared to 79.7 percent in July 2008, on a 5.4 percent decline in available seat miles (ASMs) compared to the prior-year period. Alaska also reported that 87.2 percent of its flights arrived on time in July 2009, a 7.3-point increase compared to the 79.9 percent reported in July 2008. The following tables show the operational results for July 2009 and for the first seven months of 2009, compared to the prior-year periods:

                                  July                 Year-to-Date
                                  ----                 ------------
                            2009   2008  Change     2009    2008  Change
                            ----   ----  ------     ----    ----  ------
  Revenue passenger miles
      RPMs (000,000)       1,790  1,788     0.1%  10,583  11,186     (5.4)%
  Available seat  miles
      ASMs (000,000)       2,123  2,244    (5.4)% 13,495  14,566     (7.4)%
  Passenger load factor     84.3%  79.7%  4.6pts    78.4%   76.8%   1.6pts
  Revenue passengers (000) 1,507  1,618    (6.9)%  9,063  10,123    (10.5)%
  On-time arrivals as
   reported to U.S. DOT     87.2%  79.9%  7.3pts    80.2%   78.2%   2.0pts
   --------------------     ----   ----   ------    ----    ----    ------

  HORIZON AIR

Horizon reported an increase in load factor to 80.6 percent in July 2009, compared to 77.3 percent in July 2008, on a 12.0 percent decline in capacity compared to the prior-year period. Horizon reported that 88.3 percent of its flights arrived on time in July 2009, a 2.0-point increase compared to the 86.3 percent reported in July 2008. The following tables show the operational results for July 2009 and for the first seven months of 2009, compared to the prior-year periods:

                               July                 Year-to-Date
                               ----                 ------------
                        2009  2008   Change     2009     2008    Change
                        ----  ----   ------     ----     ----    ------
  RPMs (000,000)         238   260    (8.3)%   1,371     1,613    (15.0)%
  ASMs (000,000)         296   336   (12.0)%   1,911     2,222    (14.0)%
  Passenger load factor 80.6% 77.3%  3.3pts     71.8%     72.6% (0.8)pts
  Revenue passengers
    (000)                637   705    (9.6)%   3,877     4,470    (13.3)%
  On-time arrivals      88.3% 86.3%  2.0pts     85.5%     84.5%   1.0pts
  ----------------      ----  ----    ------    ----      ----    ------

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 and 2009 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