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’s October traffic increased 4.1 percent to 1.431 billion revenue passenger miles (RPMs) from 1.374 billion flown a year earlier. Capacity during October was 1.998 billion available seat miles (ASMs), 4.1 percent higher than the 1.919 billion in October 2006.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 71.6 percent, compared to 71.6 percent in October 2006. The airline carried 1,362,000 passengers, compared to 1,333,300 in October 2006.

RPMs for the 10-month period totaled 15.384 billion, a 2.9 percent increase from the 14.953 billion recorded a year earlier. Capacity for the 10 months ended October 2007 increased 3.8 percent to 20.186 billion ASMs, compared to 19.442 billion in 2006.

The passenger load factor for the first 10 months of 2007 was 76.2 percent, compared to 76.9 percent in 2006. The airline carried 14,729,100 passengers, compared to 14,391,300 in 2006.

HORIZON AIR

Horizon’s October traffic increased 10.5 percent to 252.5 million RPMs from 228.5 million flown a year earlier. Capacity for October was 350.8 million ASMs, 12.1 percent higher than the 313.0 million in October 2006.

The passenger load factor for the month was 71.9 percent, compared to 73.0 percent in October 2006. The airline carried 666,900 passengers, compared to 586,400 in October 2006.

RPMs for the 10-month period totaled 2.448 billion, an 8.3 percent increase from the 2.260 billion recorded a year earlier. Capacity for the 10 months ended October 2007 increased 9.6 percent to 3.333 billion ASMs, compared to 3.042 billion in 2006.

The passenger load factor for the first 10 months of 2007 was 73.4 percent, compared to 74.3 percent in 2006. The airline carried 6,288,900 passengers, compared to 5,757,900 in 2006.

For Horizon’s network flying (which excludes those flights operated as Frontier JetExpress), October traffic increased 25.4 percent to 223.5 million RPMs from 178.2 million flown a year earlier. Capacity for October was 313.8 million ASMs, 29.7 percent higher than the 241.9 million in October 2006.

The passenger load factor for the month was 71.2 percent, compared to 73.7 percent in October 2006. The airline carried 616,500 passengers, compared to 508,900 in October 2006.

RPMs for the 10-month period totaled 2.101 billion, a 20.1 percent increase from the 1.749 billion recorded a year earlier. Capacity for the 10 months ended October 2007 increased 21.1 percent to 2.846 billion ASMs, compared to 2.351 billion in 2006.

The passenger load factor for the first 10 months of 2007 was 73.8 percent, compared to 74.4 percent in 2006. The airline carried 5,708,500 passengers, compared to 4,958,000 in 2006.

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

Alaska Airlines and Horizon Air together serve 92 cities through an expansive network throughout Alaska, the Lower 48, Hawaii, Canada and Mexico. For reservations visit http://www.alaskaair.com/. For more news and information, visit the Alaska Airlines/Horizon Air Newsroom at http://www.alaskaair.com/newsroom.

First Call Analyst:
FCMN Contact: caroline.boren@alaskaair.com

SOURCE: Alaska Air Group, Inc.