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Alaska Air Group Reports July 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.

The following table shows Alaska's operational results for July and year-to-date 2012, compared to the prior-year periods:

 
July
Year-to-Date
  2012 2011 Change 2012 2011 Change
Revenue passengers (in thousands) 1,769 1,695 4.4% 10,796 10,335 4.5%
Revenue passenger miles RPM (in millions) 2,308 2,122 8.8% 14,176 13,098 8.2%
Available seat miles
ASM (in millions)
2,598 2,399 8.3% 16,303 15,454 5.5%
Passenger load factor 88.8% 88.5% 0.3pts 87.0% 84.8% 2.2pts
On-time arrivals as reported to U.S. DOT 88.6% 90.9% (2.3)pts 87.6% 87.7% (0.1)pt


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 following table shows Horizon's operational results for July and year-to-date 2012, compared to the prior-year periods:

 
July
Year-to-Date
  2012 2011 Change 2012 2011 Change
Revenue passengers (in thousands) 624 586 6.5% 3,870 3,883 (0.3)%
RPMs (in millions) 198 186 6.5% 1,190 1,283 (7.2)%
ASMs (in millions) 241 230 4.8% 1,535 1,663 (7.7)%
Passenger load factor 82.2% 80.9% 1.3pts 77.5% 77.1% 0.4pts
On-time arrivals 92.0% 88.0% 4.0pts 91.2% 82.7% 8.5pts
             

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.

The following table shows the operational results for July and year-to-date 2012, compared to the prior-year periods:

 
July
Year-to-Date
  2012 2011 Change 2012 2011 Change
Revenue passengers (in thousands) 2,447 2,331 5.0% 15,007 14,329 4.7%
RPMs (in millions) 2,553 2,353 8.5% 15,654 14,499 8.0%
ASMs (in millions) 2,892 2,679 8.0% 18,175 17,260 5.3%
Passenger load factor 88.3% 87.8% 0.5pts 86.1% 84.0% 2.1pts


Alaska Airlines and Horizon Air, subsidiaries of Alaska Air Group (NYSE: ALK), together serve more than 90 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. Alaska Airlines has ranked "Highest in Customer Satisfaction Among Traditional Network Carriers" in the J.D. Power and Associates North America Airline Satisfaction StudySM for five consecutive years from 2008 to 2012. For reservations, visit www.alaskaair.com. For more news and information, visit the Alaska Airlines/Horizon Air Newsroom at www.alaskaair.com/newsroom.

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