Alaska Air Group Reports October Traffic

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

ALASKA AIRLINES

Alaska reported a two-point increase in load factor to 73.6 percent in October 2008, compared to October 2007 on a 3.7 percent decline in available seat miles (ASMs), compared to the prior-year period. Alaska also reported that 84.4 percent of its flights arrived on time in October 2008, a 14.3-point increase over the 70.1 percent reported in October 2007. The following tables show the operational results for October 2008 and the first 10 months of 2008, compared to the prior-year periods:

                                 October               Year-to-Date
                           2008   2007  Change    2008     2007     Change
  Revenue Passenger Miles
   (RPMs) (000,000)       1,417  1,431  (1.0)%   15,827   15,384      2.9%
  Available Seat Miles
   (ASMs) (000,000)       1,924  1,998  (3.7)%   20,552   20,186      1.8%
  Passenger Load Factor   73.6%  71.6% 2.0 pts    77.0%    76.2%    0.8pts
  Revenue Passengers
   (000)                  1,270  1,362  (6.8)%   14,308   14,729    (2.9)%
  On-time Arrivals as
   reported to U.S. DOT   84.4%  70.1% 14.3pts    79.8%    72.0%    7.8pts


  HORIZON AIR

Horizon reported a slight decline in load factor to 71.1 percent in October 2008, compared to 72.0 percent in October 2007 on a 21.0 percent decline in capacity, compared to the prior-year period. Horizon also reported that 89.4 percent of its flights arrived on time in October 2008, a 9.3-point increase over the 80.1 percent reported in October 2007. The following tables show the operational results for October 2008 and the first 10 months of 2008, compared to the prior-year periods:

                                October                Year-to-Date
                           2008  2007   Change     2008    2007    Change
  RPMs (000,000)            197    253  (22.0)%   2,271   2,448     (7.2)%
  ASMs (000,000)            277    351  (21.0)%   3,109   3,333     (6.7)%
  Passenger Load Factor   71.1%  72.0% (0.9)pts   73.1%   73.4%   (0.3)pts
  Revenue Passengers
   (000)                    579    667  (13.2)%   6,333   6,289       0.7%
  On-time Arrivals        89.4%  80.1%  9.3 pts  85.5 %   82.0%    3.5 pts

Alaska Airlines and sister carrier Horizon Air together serve more than 90 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.