Alaska Air Group Reports October 2012 Operational Results

SEATTLE — Alaska Air Group Inc. (NYSE: ALK) today reported October 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 8.5 percent increase in traffic on a 5.1 percent increase in capacity compared to October 2011. This resulted in a 2.6-point increase in load factor to an October record of 85.2 percent. Alaska also reported 86.8 percent of its flights arrived on time in October, compared to the 91.1 percent reported in October 2011. Hurricane Sandy had a minimal impact on Alaska’s capacity as 38 flights to and from East Coast destinations were canceled. The canceled flights reduced scheduled capacity by approximately 14 million available seat miles or about 0.6% of October 2012 capacity.

Horizon reported a 7.9 percent increase in traffic on an 8.1 percent increase in capacity compared to October 2011. This resulted in a 0.1-point decrease in load factor to 77.6 percent. Horizon also reported 90.6 percent of its flights arrived on time in October, compared to the 91.8 percent reported in October 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 a 5.3 percent increase in capacity compared to October 2011. This resulted in a 2.5-point increase in load factor to a record 84.5 percent. These statistics include flights operated by Alaska and those under capacity purchase agreements, including Horizon, SkyWest and PenAir.