Alaska Air Group Reports September Traffic

SEATTLE — Alaska Air Group, Inc. (NYSE:ALK) today reported September passenger traffic for its subsidiaries, Alaska Airlines (Alaska) and Horizon Air (Horizon).

ALASKA AIRLINES

Alaska’s September traffic increased 1.7 percent to 1.427 billion revenue passenger miles (RPMs) from 1.403 billion flown a year earlier. Capacity during September was 1.988 billion available seat miles (ASMs), 4.2 percent higher than the 1.907 billion in September 2006.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 71.8 percent, compared to 73.6 percent in September 2006. The airline carried 1,391,300 passengers, compared to 1,365,700 in September 2006.

RPMs for the nine-month period totaled 13.953 billion, a 2.8 percent increase from the 13.579 billion recorded a year earlier. Capacity for the nine months ended September 2007 increased 3.8 percent to 18.188 billion ASMs, compared to 17.523 billion in 2006.

The passenger load factor for the first nine months of 2007 was 76.7 percent, compared to 77.5 percent in 2006. The airline carried 13,367,100 passengers, compared to 13,058,000 in 2006.

HORIZON AIR

Horizon’s September traffic increased 9.2 percent to 238.6 million RPMs from 218.5 million flown a year earlier. Capacity during September was 334.6 million ASMs, 10.9 percent higher than the 301.6 million in September 2006.

The passenger load factor for the month was 71.3 percent, compared to 72.4 percent in September 2006. The airline carried 610,100 passengers, compared to 567,200 in September 2006.These results reflect the cancellation of 5 percent of the airline’s expected ASMs for the month. The reduction occurred over a 13-day period during which Horizon successfully completed landing gear inspections on all its Q400 aircraft to the specifications of manufacturer Bombardier and Transport Canada’s Airworthiness Directive.

RPMs for the nine-month period totaled 2.195 billion, an 8.0 percent increase from the 2.032 billion recorded a year earlier. Capacity for the nine months ended September 2007 increased 9.3 percent to 2.982 billion ASMs, compared to 2.729 billion in 2006.

The passenger load factor for the first nine months of 2007 was 73.6 percent, compared to 74.5 percent in 2006. The airline carried 5,622,100 passengers, compared to 5,171,500 in 2006.

For Horizon’s network flying (which excludes those flights operated as Frontier JetExpress), September traffic increased 16.9 percent to 207.9 million RPMs from 177.8 million flown a year earlier. Capacity during September was 290.9 million ASMs, 21.8 percent higher than the 238.8 million in September 2006.

The passenger load factor for the month was 71.5 percent, compared to 74.5 percent in September 2006. The airline carried 554,900 passengers, compared to 502,000 in September 2006.

RPMs for the nine-month period totaled 1.878 billion, a 19.5 percent increase from the 1.571 billion recorded a year earlier. Capacity for the nine months ended September 2007 increased 20.1 percent to 2.532 billion ASMs, compared to 2.109 billion in 2006.

The passenger load factor for the first nine months of 2007 was 74.2 percent, compared to 74.5 percent in 2006. The airline carried 5,092,000 passengers in network flying, compared to 4,449,100 in 2006.

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