Alaska Air Group Reports June Traffic

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

ALASKA AIRLINES

Alaska’s June traffic increased 4.9 percent to 1.723 billion revenue passenger miles (RPMs) from 1.642 billion flown a year earlier. Capacity during June was 2.119 billion available seat miles (ASMs), 5.2 percent higher than the 2.014 billion in June 2006.

The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 81.3 percent, compared to 81.5 percent in June 2006. The airline carried 1,645,900 passengers, compared to 1,579,100 in June 2006.

RPMs for the six-month period totaled 8.886 billion, a 2.1 percent increase from the 8.706 billion recorded a year earlier. Capacity for the six months ended June 2007 increased 4.1 percent to 11.834 billion ASMs, compared to 11.373 billion in 2006.

The passenger load factor for the first six months of 2007 was 75.1 percent, compared to 76.5 percent in 2006. The airline carried 8,489,400 passengers, compared to 8,348,100 in 2006.

HORIZON AIR

Horizon’s June traffic increased
8.0 percent to 258.2 million RPMs from 239.0 million flown a year earlier. Capacity during June was 325.9 million ASMs, 8.0 percent higher than the 301.8 million in June 2006.

The passenger load factor for the month was 79.2 percent, matching the 79.2 percent in June 2006. The airline carried 674,700 passengers, compared to 608,200 in June 2006.

RPMs for the six-month period totaled 1.356 billion, a 3.5 percent increase from the 1.310 billion recorded a year earlier. Capacity during the six months ended June 2007 increased 6.7 percent to 1.898 billion ASMs, compared to 1.778 billion in 2006.

The passenger load factor for the first six months of 2007 was 71.4 percent, compared to 73.7 percent in 2006. The airline carried 3,517,800 passengers, compared to 3,339,200 in 2006.

For Horizon’s network flying (which excludes those flights operated as Frontier JetExpress), June traffic increased 22.5 percent to 223.7 million RPMs from 182.6 million flown a year earlier. Capacity during June was 278.5 million ASMs, 20.1 percent higher than the 231.8 million in June 2006.

The passenger load factor for the month was a record 80.3 percent, compared to
78.8 percent in June 2006. The airline carried 610,000 passengers, compared to 516,200 in June 2006.

RPMs for the six-month period totaled 1.149 billion, a 15.6 percent increase from the 994.3 million recorded a year earlier. Capacity during the six months ended June 2007 increased 17.0 percent to 1.586 billion ASMs, compared to 1.356 billion in 2006.

The passenger load factor for the first six months of 2007 was 72.4 percent, compared to 73.4 percent in 2006. The airline carried 3,179,000 passengers, compared to 2,859,000 in 2006.

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