Alaska Air Group Reports July 2012 Operational Results

SEATTLE – Alaska Air Group Inc. (NYSE: ALK) today reported July operational results for its subsidiaries, Alaska Airlines and Horizon Air, and on a combined basis. Detailed information is provided below.

ALASKA AIRLINES – MAINLINE

Alaska reported an 8.8 percent increase in traffic on an 8.3 percent increase in capacity compared to July 2011. This resulted in a 0.3-point increase in load factor to a July record of 88.8 percent. Alaska also reported 88.6 percent of its flights arrived on time in July, compared to the 90.9 percent reported in July 2011.

HORIZON AIR

Horizon reported a 6.5 percent increase in traffic on a 4.8 percent increase in capacity compared to July 2011. This resulted in a 1.3-point increase in load factor to a July record of 82.2 percent. Horizon also reported a record 92.0 percent of its flights arrived on time in July, compared to the 88.0 percent reported in July 2011.

The year-to-date decline in capacity and traffic for Horizon from the prior year is due primarily to the
completion of Horizon’s transition out of the CRJ-700 regional jet. This transition was completed in June 2011.

AIR GROUP (including flights operated by third parties)

On a combined basis, Air Group reported an 8.5 percent increase in traffic on an 8.0 percent increase in capacity compared to July 2011. This resulted in a 0.5-point increase in load factor to a record 88.3 percent. These statistics include flights operated by Alaska and those under capacity purchase agreements, including Horizon, SkyWest and PenAir.