Alaska Air Group Reports June Traffic

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

ALASKA AIRLINES

Alaska reported an 11.5 percent increase in traffic on a 6.4 percent increase in capacity, resulting in a 3.9-point increase in load factor to 84.6 percent. Alaska also reported that 88.9 percent of its flights arrived on time in June 2010, a 4.4-point increase compared to the 84.5 percent reported in June 2009.

The following table shows the operational results for June 2010 and for the first six months of 2010, compared to the prior-year periods:

                                 June                     Year-to-Date
                                 ----                     ------------
                           2010   2009  Change     2010    2009    Change
                           ----   ----  ------     ----    ----    ------
  Revenue passenger miles
      RPMs (in millions)  1,832  1,644     11.5%  9,544   8,792        8.6%
  Available seat miles
      ASMs (in millions)  2,167  2,036      6.4% 11,653  11,372        2.5%
  Passenger load factor    84.6%  80.7%  3.9pts    81.9%   77.3%    4.6pts
  Revenue passengers (in
   thousands)             1,501  1,404      6.9%  7,811   7,556        3.4%
  On-time arrivals as
   reported
    to U.S. DOT            88.9%  84.5%  4.4pts    88.5%   78.9%    9.6pts
    -----------            ----   ----   ------    ----    ----     ------


  HORIZON AIR

Horizon reported a 0.9 percent increase in traffic on a 1.2 percent increase in capacity, resulting in a 0.3-point decrease in load factor to 79.1 percent. Horizon also reported that 87.5 percent of its flights arrived on time in June 2010, a 1.1-point decrease compared to the 88.6 percent reported in June 2009.

The following table shows the operational results for June 2010 and for the first six months of 2010, compared to the prior-year periods:

                                June                  Year-to-Date
                                ----                  ------------
                         2010  2009   Change    2010     2009   Change
                         ----  ----   ------    ----     ----   ------
  RPMs (in millions)      228   226       0.9% 1,189    1,133       4.9%
  ASMs (in millions)      288   284       1.2% 1,626    1,615       0.7%
  Passenger load factor  79.1% 79.4% (0.3)pts   73.1%    70.2%   2.9pts
  Revenue passengers (in
   thousands)             613   608       0.8% 3,289    3,240       1.5%
  On-time arrivals       87.5% 88.6% (1.1)pts   89.4%    85.0%   4.4pts
  ----------------       ----  ----  --------   ----     ----    ------

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, 2009 and 2010 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, Inc.