UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K/A
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
March 25, 2008
(Date of earliest event reported)

ALASKA AIR GROUP, INC.	
(Exact Name of Registrant as Specified in Its Charter)	
Delaware
(State or Other Jurisdiction of Incorporation)

1-8957	 	91-1292054	
(Commission File Number)	 	(IRS Employer Identification No.)	

 	 	
19300 International Boulevard, Seattle, Washington	 	98188	
(Address of Principal Executive Offices)	 	(Zip Code)	

(206) 392-5040	
(Registrant’s Telephone Number, Including Area Code)	

 	
 	
(Former Name or Former Address, if Changed Since Last Report)	
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
 
1

The Company is furnishing this amended 8-K as a result of two typographical errors found in the original 8-K furnished on March 24, 2008. On page 2 of Exhibit 99.1 in the table “Forecast Information,” the full year 2008 capacity range should be 24,650-24,700 rather than 22,650-22,700. Additionally, on page 6 of Exhibit 99.1 under the heading “Cash and Share Count,” the second column should have been labeled December 31, 2007. Exhibit 99.1 has been corrected accordingly.
 
ITEM 7.01.	  Regulation FD Disclosure	
Pursuant to 17 CFR Part 243 (“Regulation FD”), the Company is submitting information relating to its financial and operational outlook for 2008 as attached in Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this report shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. This report will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
 
ITEM 9.01.	  Financial Statements and Other Exhibits	

Exhibit 99.1	  	Investor Update	
 	 	
Exhibit 99.2	  	Select slides from JPMorgan Aviation and Transportation Conference (March 18, 2008)	
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 	
ALASKA AIR GROUP, INC.	
Registrant	
 	
Date: March 25, 2008	
 	
/s/ Brandon S. Pedersen	
Brandon S. Pedersen	
Vice President/Finance and Controller	
 	
/s/ Bradley D. Tilden	
Bradley D. Tilden	
Executive Vice President/Finance and Planning and Chief Financial Officer
 
2

Exhibit 99.1

Investor Update – March 24, 2008
References in this update to “Air Group,” “Company,” “we,” “us,” and “our” refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.
This report includes information regarding forecasts of available seat miles (ASMs), cost per available seat mile (CASM) excluding fuel consumption, as well as certain actual results for revenue passenger miles (RPMs), load factor and revenue per available seat mile (RASM), for our subsidiaries Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon). Our disclosure of operating cost per available seat mile, excluding fuel, provides us the ability to measure and monitor our performance without these items. The most directly comparable GAAP measure is total operating expense per available seat mile. However, due to the large fluctuations in fuel prices, we are unable to predict total operating expense for any future period with any degree of certainty. In addition, we believe the disclosure of fuel expense on an economic basis is useful to investors in evaluating our ongoing operational performance. Please see the cautionary statement under “Forward-Looking Information.”
We are providing unaudited information about fuel price movements and the impact of our hedging program on our financial results. Management believes it is useful to compare results between periods on an “economic basis.”  Economic fuel expense  is defined as the raw or “into-plane” fuel cost less the cash we receive from hedge counterparties for hedges that settle during the period, offset by the premium expense that we recognize. Economic fuel expense more closely approximates the net cash outflow associated with purchasing fuel for our operation.
Forward-Looking Information
This update contains forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by any forward-looking statements. For a comprehensive discussion of potential risk factors, see Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007. Some of these risks include increased competition, significant fuel costs, general economic conditions, labor costs and relations, our significant indebtedness, inability to meet cost reduction goals, terrorist attacks, seasonal fluctuations in our financial results, an aircraft accident, laws and regulations, and government fees and taxes. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results. Over time, our actual results, performance or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such differences might be significant and materially adverse.
 
1

 	
  ALASKA AIRLINES – MAINLINE	
   February 2008 Statistics

 	  	February
2008	    	Change
Y-O-Y	    	QTD
2008	    	Change
Y-O-Y	
Capacity (ASMs in millions)	  	1,935	    	9.4%	    	3,985	    	7.7%	
Traffic (RPMs in millions)	  	1,419	    	13.5%	    	2,830	    	11.7%	
Revenue passengers (000s)	  	1,287	    	7.4%	    	2,543	    	5.3%	
Load factor*	  	73.3%	    	2.6 pts	    	71.0%	    	2.5 pts	
RASM (cents)	  	10.59	    	3.0%	    	10.24	    	1.7%	
Passenger RASM (cents)	  	9.64	    	3.2%	    	9.35	    	2.4%	
Raw fuel cost ($ in millions)	  	$79.6	    	55.6%	    	$162.3	    	52.7%	
Raw fuel cost/gal.	  	$2.92	    	49.0%	    	$2.89	    	49.0%	
Economic fuel expense ($ in millions)	  	$72.4	    	43.6%	    	$148.6	    	40.5%	
Economic fuel expense/gal.	  	$2.65	    	37.3%	    	$2.64	    	36.1%	
    *percentage of available seats occupied by fare-paying passengers
   Advance Bookings

  	  	      March      	  	      April      	  	      May      	
Point Change Y-O-Y	  	+3 pts	  	+1 pt	  	+1 pt	
 
   Forecast Information

Forecast
Q1 2008	    	Change
Y-O-Y	    	Forecast
FY 2008	    	Change
Y-O-Y	
 	 	 	 	 	
Capacity (ASMs in millions)	  	6,050	    	6%	    	24,650-24,700	    	2%	
 	 	 	 	 	
Unit Costs:	  	 	    	 	    	 	    	 	
    Cost per ASM on a GAAP basis (cents)*	  	11.4 – 11.5	    	8% - 9%	    	N/A	    	N/A	
    Less: Fuel cost per ASM (cents)*	  	3.8	    	36%	    	N/A	    	N/A	
    Cost per ASM excluding fuel (cents)*	  	7.6 –7.7	    	(1)%-(3)%	    	7.5	    	-	
 	 	 	 	 	
Fuel Gallons (000,000)	  	86.0	    	2%	    	N/A	    	N/A	
Economic fuel cost per gallon**	  	$2.69	    	38%	    	N/A	    	N/A	
*For Alaska, our forecasts of mainline cost per ASM and fuel cost per ASM are based on forward-looking estimates, which will likely differ from actual results due to several factors including, but not limited to, the volatility of fuel prices. Fuel cost per ASM above includes our estimate of raw fuel cost for the first quarter and the actual unfavorable adjustments to the value of our fuel-hedging portfolio in January and February. Our economic fuel cost per ASM will likely be different than the amount presented here.
**Because of the volatility of fuel prices, actual amounts may differ significantly.
 
2

 	
  ALASKA – PURCHASED CAPACITY	
Alaska has Capacity Purchase Agreements (CPA) with Horizon for certain routes and a third party whereby Alaska purchases capacity for service between Anchorage and Dutch Harbor, AK.
   February 2008 Statistics
The following data represents only the Horizon CPA flying as that flying represents approximately 95% of the total purchased capacity.

 	  	February 2008	    	Change
Y-O-Y	    	QTD
2008	    	Change
Y-O-Y	
 	 	 	 	 	
Capacity (ASMs in millions)	  	105	    	6.7%	    	221	    	17.6%	
Traffic (RPMs in millions)	  	80	    	13.9%	    	160	    	23.9%	
Load factor*	  	76.2%	    	4.8 pts	    	72.3%	    	3.7 pts	
RASM (cents)	  	19.60	    	9.4%	    	18.72	    	7.6%	
  *Percentage of available seats occupied by fare-paying passengers	
   Advance Bookings

  	  	      March      	  	      April      	  	      May      	
Point Change Y-O-Y	  	+4 pts	  	flat	  	+2 pts	
   Forecast Information

 	  	Forecast
Q1 2008	    	Change
Y-O-Y	    	Forecast
FY 2008	    	Change
Y-O-Y	
Capacity (ASMs in millions)	  	360	    	14%	    	N/A	    	N/A	
Cost per ASM (cents)*	  	20.8-21.0	    	(2%-3%)	    	N/A	    	N/A	
  * The operating data above includes capacity under the CPA with Horizon. Costs associated with this agreement are eliminated in consolidation
 
3

 	
  HORIZON AIR	
  February 2008 Statistics

February
2008	  	    Change    
Y-O-Y	  	    QTD    
2008	  	    Change    
Y-O-Y	
Capacity (ASMs in millions)	  	298	  	1.3%	  	615	  	3.1%	
Traffic (RPMs in millions)	  	212	  	4.7%	  	417	  	5.9%	
Revenue passengers (000s)	  	606	  	18.1%	  	1,192	  	17.4%	
Load factor*	  	71.1%	  	2.3 pts	  	67.8%	  	1.8 pts	
System RASM (cents)	  	18.88	  	7.0%	  	18.40	  	6.6%	
Raw fuel cost ($ in millions)	  	$16.6	  	78.5%	  	$34.1	  	80.4%	
Raw fuel cost/gal.	  	$2.96	  	48.7%	  	$2.94	  	46.2%	
Economic fuel expense ($ in millions)	  	$15.2	  	65.0%	  	$31.3	  	66.4%	
Economic fuel expense/gal.	  	$2.69	  	37.3%	  	$2.70	  	34.5%	
  *percentage of available seats occupied by fare-paying passengers
Line-of-Business Information
Horizon’s year-to-date information for line-of-business traffic and revenue information is presented below. In CPA arrangements, Horizon is (or was, as was the case with the Frontier CPA which ended in November 2007) insulated from market revenue factors and is guaranteed contractual revenue amounts based on operational capacity. As a result, yield and load factor information is not presented. Horizon bears the revenue risk in its brand flying markets. Revenue from the Alaska CPA is eliminated in consolidation.
February 2008
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Capacity Mix	    	Load Factor	    	Yield	    	RASM	
 	  	Actual
(000s)	  	Change
Y-O-Y	  	Current
% Total	    	Actual	  	 
Point change
Y-O-Y	    	Actual	  	Change
Y-O-Y	    	Actual	  	Change
Y-O-Y	
  Brand Flying	  	192,579	  	38.1%	  	65%	    	68.4%	  	0.5	 	pts	    	25.02¢	  	(11.1)%	    	17.60¢	  	(10.5)%	
  Alaska CPA	  	105,102	  	1.7%	  	35%	    	NM	  	        NM	 	 	    	NM	  	NM	    	21.22¢	  	   3.4%	
  Frontier CPA	  	—	  	(100.0)%	  	—%	    	NM	  	NM	 	 	    	NM	  	NM	    	NM	  	NM  	
 
  System Total	  	 
297,682	  	 
1.3%	  	 
100%	    	 
71.1%	  	 
2.3	 	 
pts	    	 
26.09¢	  	 
3.3%	    	 
18.88¢	  	 
   7.0%	
    NM = Not Meaningful
QTD 2008
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Capacity Mix	    	Load Factor	    	Yield	    	RASM	
 	  	Actual
(000s)	  	Change
Y-O-Y	  	Current
% Total	    	Actual	  	 
Point change
Y-O-Y	    	Actual	  	Change
Y-O-Y	    	Actual	  	Change
Y-O-Y	
  Brand Flying	  	393,540	  	31.5%	  	64%	    	65.3%	  	(0.5)	 	pts	    	25.38¢	  	(8.9)%	    	17.00¢	  	(9.7)%	
  Alaska CPA	  	221,240	  	17.6%	  	36%	    	NM	  	        NM	 	 	    	NM	  	NM	    	20.88¢	  	(1.5)%	
  Frontier CPA	  	—	  	(100.0)%	  	—%	    	NM	  	NM	 	 	    	NM	  	NM	    	NM	  	NM  	
 
  System Total	  	 
614,780	  	 
3.1%	  	 
100%	    	 
67.8%	  	 
1.8	 	 
pts	    	 
26.72¢	  	 
   3.7%	    	 
18.40¢	  	 
   6.6%	
    NM = Not Meaningful

Advance Bookings – Brand Flying Only	  	 	  	 	  	 	  	 	  	 	 	 	  	 	  	 	  	 	  	 	

  	  	 
      March      	  	      April      	  	      May      	
Point Change Y-O-Y	  	+1 pt	  	-1 pt	  	flat	
 
4

 	
  HORIZON AIR - (continued)	
   Forecast Information

  Forecast  
Q1 2008	  	  Change  
Y-O-Y	  	  Forecast  
FY 2008	  	  Change  
Y-O-Y	
Capacity (ASMs in millions)	 	930	  	1%	  	3,800-3,850	  	(4)%	
 	 	 	 	 	
Unit Costs	 	 	  	 	  	 	  	 	
    Cost per ASM on a GAAP basis (cents)*	 	20.3-20.4	  	11%	  	N/A	  	N/A	
    Less: Fuel cost per ASM (cents)*	 	4.9	  	65%	  	N/A	  	N/A	
    Cost per ASM excluding fuel (cents)*	 	15.4-15.5	  	0-1%	  	14.6	  	-	
 	 	 	 	 	
Fuel Gallons (000,000)**	 	17.8	  	22%	  	N/A	  	N/A	
Economic fuel cost per gallon***	 	$2.70	  	35%	  	N/A	  	N/A	
* For Horizon, our forecasts of cost per ASM and fuel cost per ASM are based on forward-looking estimates, which will likely differ significantly from actual results. There are several factors impacting our estimates including, but not limited to, the volatility of fuel prices. Fuel cost per ASM above includes our estimate of raw fuel cost for the first quarter and the actual unfavorable adjustments to the value of our fuel-hedging portfolio in January and February. We expect that our economic fuel cost per ASM will be lower.
Horizon’s CASM includes the expected loss on the sublease of Q200 aircraft to a third party. We expect the loss will be approximately $6 million in the first quarter of 2008 as we deliver three of the remaining five Q200s to the third party under the existing sublease agreement.
**Horizon’s fuel consumption now includes fuel that was formerly purchased by Frontier as part of the Frontier CPA agreement.
***Because of the volatility of fuel prices, actual amounts may differ significantly.
 
5

 	
  AIR GROUP	
  Future Fuel Hedge Positions

 	  	Approximate % of Expected
Fuel Requirements	    	Approximate Crude Oil
Price per Barrel	
  First Quarter 2008	  	50%	    	$66.88	
  Second Quarter 2008	  	50%	    	$72.60	
  Third Quarter 2008	  	50%	    	$78.03	
  Fourth Quarter 2008	  	50%	    	$76.74	
    Full Year 2008	  	50%	    	$73.72	
 	 	 	
  First Quarter 2009	  	16%	    	$83.97	
  Second Quarter 2009	  	16%	    	$82.90	
  Third Quarter 2009	  	12%	    	$82.95	
  Fourth Quarter 2009	  	10%	    	$82.08	
    Full Year 2009	  	13%	    	$83.07	
Cash and Share Count
 	 	 	 	 	
  (in millions)	  	        February 29,        
2008  	  	        December 31,        
2007   	
  Cash and marketable securities	  	   $920	  	   $823	
  Common shares outstanding	  	36.535	  	38.051	
The Company does not have any auction-rate securities in its investment portfolio.
Share Repurchase Program
The Company completed its $100 million common stock repurchase program on February 29, 2008. Under that program, the Company repurchased 4,113,782 shares, or 10 percent of the outstanding stock at the start of the program, at an average price of $24.31 per share.
On March 13, 2008, the Company announced a new $50 million common stock repurchase program. Through March 19, 2008, the Company had repurchased 75,000 shares of its common stock for approximately $1.4 million under this new program.
Capital Expenditures
Total capital expenditures for 2008 are expected to be as follows (in millions):

 	  	Alaska	    	Horizon	    	Air Group      	
   Aircraft -related	  	$390	    	$100	    	$490	
   Non aircraft-related	  	    75	    	      5	    	    80	
   Totals	  	$465	    	$105	    	$570	
Firm Aircraft Commitments

 	  	2008	  	2009	    	2010	    	Thereafter	    	Total    	
   Alaska (B737-800)	  	17*	  	  6	    	6	    	3	    	32	
   Horizon (Q-400)	  	 3	  	12	    	-	    	-	    	15	
   Totals	  	20	  	18	    	6	    	3	    	47	
* includes one operating lease arrangement
In addition to the firm orders noted above, Alaska has options to acquire 45 additional B737-800s and Horizon has options to acquire 20 Q400s.
 
6

 	
AIR GROUP – (continued)	
  Projected Fleet Count

 	 	 	 	 	 	
 	    	 	    	 	    	 	    	Change by Quarter	    	 	
Alaska	    	Seats    	    	Actual    
31-Dec-06    	    	Actual    
31-Dec-07    	    	Q1	    	Q2	    	Q3	    	Q4	    	Planned
31-Dec-08	
737-200	    	—	    	    2	    	—	    	—	    	—	    	—	    	—	    	  —	
737-400F*	    	—	    	    1	    	    1	    	—	    	—	    	—	    	—	    	    1	
737-400C*	    	  72	    	—	    	    5	    	—	    	—	    	—	    	—	    	    5	
737-400	    	144	    	  39	    	  34	    	—	    	—	    	—	    	(2)	    	  32	
737-700	    	124	    	  22	    	  20	    	—	    	—	    	—	    	—	    	  20	
737-800	    	157	    	  15	    	  29	    	4	    	3	    	5	    	5	    	  46	
737-900	    	172	    	  12	    	  12	    	—	    	—	    	—	    	—	    	  12	
MD-80	    	140	    	  23	    	  14	    	(5)	    	(2)	    	(7)	    	—	    	  —	
Totals	    	 	    	114	    	115	    	(1)	    	1	    	(2)	    	3	    	116	
 	 	 	 	 	 	
 	    	 	    	 	    	 	    	Change by Quarter	    	 	
Horizon	    	Seats	    	Actual
31-Dec-06	    	Actual
31-Dec-07	    	Q1	    	Q2	    	Q3	    	Q4	    	Planned
31-Dec-08	
Q200	    	     37	    	28	    	16	    	(3)	    	(1)	    	(1)	    	(2)	    	    9	
Q400	    	74-76	    	20	    	33	    	—	    	—	    	—	    	3	    	  36	
CRJ-700	    	     70	    	21	    	21	    	(1)	    	—	    	—	    	—	    	  20	
Totals	    	 	    	69	    	70	    	(4)	    	(1)	    	(1)	    	1	    	  65	
*F=Freighter; C=Combination freighter/passenger
Investor Presentation
On March 18, 2008, Chairman and CEO Bill Ayer presented updated company information at the JPMorgan Aviation and Transportation Conference. A replay of the webcast is available in the Investor Information section of our website at alaskaair.com. Selected slides from the presentation are also furnished with this update. The presentation focused on management’s belief that the Company may be better positioned than other domestic air carriers to weather an economic downturn given the following strengths:
 
 	—	 	Strong hedge portfolio	
 	—	 	Young, fuel-efficient, simple fleet	
 	—	 	Strong network of codeshare partners, poised to benefit from Trans-Pacific growth	
 	—	 	Good progress with cost reduction	
 	—	 	Conservative balance sheet with strong liquidity	
 	—	 	The Pacific Northwest and Alaska may fare better economically than other regions	
 	—	 	Management team committed to shareholder returns.	
 
7

13.73¢12.34¢12.50¢13.76¢13.94¢12.51¢12.19¢13.35¢14.48¢$2.83$0.71$0.86$0.75$1.97$2.17$1.73$1.21$0.900¢10¢20¢30¢40¢$0.00$0.50$1.00$1.50$2.00$2.50$3.00YieldJet Fuel PriceThe industry problem: Jet fuelincreases are outpacing fare increasesSource:  ATA and U.S. Energy Information AdministrationYield is trip length adjusted  (2000 base) in cents per revenue passenger mileExhibit 99.2

Alaska is well prepared to weatheranother downturn•Strong hedge portfolio•Young, fuel-efficient, simple fleet•Strong network of codeshare partners, poised tobenefit from Trans-Pac growth•Good progress with cost reduction•Conservative balance sheet with strong liquidity•The PNW and Alaska may fare better economicallythan other regions•Management team committed to shareholder returns

Air Group has the second best hedgeposition in the industrySource: Public Data, Bloomberg. May not include recent changes by other airlines.1Totals are annualized or estimated from Jet or heating oil positions.2Values shown are crude oil equivalents.Note: The information above is derived from information available at the time this slide was created. Although there maybesomeinaccuraciesinthedataforothercarriers,managementdoesnotbelieveitwouldchangetheCompany’srelativeposition.1Q0820082009Hedged$/BBL²70%$5150%$7421%      $8026%$9024%$7930%$8225%$909%       $9224%      $9018%$93+13%$90Hedged$/BBL²55%$5113%$83--------6%$100--9%$86----SouthwestAlaskajetBlue¹AirTran¹AmericanUS Airways¹Frontier¹Continental¹Delta1NorthwestUnited¹Hedged$/BBL²75%$5150%$6735%$7737%$9035%$7750%$7822%$6422%$9024%$9045%$88+13%$92

An all-737 fleet by year-endDecember 2008737-80046737-70020737-90012737-40038All-737 Fleet116 aircraft17.5151312.810.8109.47.643.10369121518NorthwestAmericanUnitedDeltaUS AirContinentalSouthwestAlaska 2009AirTranJetBlueAverage fleet age (years)Source:  10K reports as of Dec. 31, 2007

Alaska’s aircraft are the mostfuel-efficient in operation today•Alaska Domestic Mission Rules•1,000 statute miles•Nominal fuel burn•Pax/Bag weight = 220 lb•100% load factorSource: The Boeing CompanyBetter13.1212.6316.4915.3612.7511.6511.1610.7612.38381318A319  122 seats737-700W124 seatsDC-9 140125 seatsMD-80 140seats737-400144 seatsA320  149 seats737-800W157 seats737-900W172 seats757-200182 seats

Fleet changes and hedges significantlyreduce fuel costs per ASMFuel cost per ASMFuel cost per ASMoil @ $100 per barreloil @ $100 per barrel2.9¢4.6¢2.4¢4.2¢3.9¢Alaska 2005Alaska 2008RawRawEconomicEconomicRawRaww/2005w/2005fleetfleetEconomicEconomicRawRawin 2008in 2008Raw costincrease = ~60% Fleet changes = .4¢(about $100 million)

Horizon’s fleet is being simplifiedQ20028Q2002869 aircraftCRJ 70021Q40020December 200668 aircraftAugust 2009CRJ 70020Q40048

Horizon’s aircraft are amongthe most fuel-efficient5.86.26.77.17.27.37.710.634567891011     Q400  76 seatsCRJ90088 seats      E190  99 seatsCRJ70070 seats    Q200   37 seatsCRJ20050 seats     E170   72 seats    B1900  19 seats•400 statute miles•100% load factorSource: BombardierBetterFuel gallons per passenger

Strong partnerships position us well tocapitalize on Trans-Pac growthMajor DomesticMajor DomesticInternationalInternationalInternational Mileage Plan OnlyRegionalsRegionals

Source:  AAG revenue reports and APGDat.  Size of line indicated relative volume.Los CabosLos CabosPuerto VallartaPuerto VallartaManzanilloManzanilloGuadalajaraGuadalajaraOrlandoOrlandoLoretoLoretoMazatlanMazatlanChicagoChicagoMexico CityMexico CityPalm SpringsPalm SpringsSan DiegoSan DiegoLas VegasLas VegasPhoenixPhoenixTucsonTucsonCancunCancunLa PazLa PazVancouverVancouverLihueLihueLihueHonoluluHonoluluHonoluluMiamiMiamiWashington, D.C.Washington, D.C.BostonBostonNew YorkNew York(Newark)(Newark)Dallas/Ft WorthDallas/Ft WorthDenverDenverSpokaneSpokaneRenoRenoSacramentoSacramentoBoiseBoiseSan JoseSan JoseOaklandOaklandNomeNomeBarrowBarrowPrudhoe BayPrudhoe BayKotzebueKotzebueBethelBethelDutchDutchHarborHarborSitkaSitkaDillinghamDillinghamKing SalmonKing SalmonKodiakKodiakFairbanksFairbanksJuneauJuneauPetersburgPetersburgWrangellWrangellAnchorageAnchorageYakutatYakutatGlacier Bay/Glacier Bay/CordovaCordovaGustavusGustavusAdakAdakKetchikanKetchikanPartners drive additional revenue Partners drive additional revenue to AAG from international points;to AAG from international points;big opportunity in Asiabig opportunity in AsiaJapan/AsiaJapan/AsiaNorthwestNorthwestCathayCathayOntarioOntarioBurbankBurbankOrange CountyOrange CountyLong BeachLong BeachLos Angeles Int'lLos Angeles Int'lSeattleSeattlePortlandPortlandSan Francisco Int'lSan Francisco Int'lCaribbean/South AmericaCaribbean/South AmericaAmericanAmericanEurope/Middle East/AfricaEurope/Middle East/AfricaNorthwest/KLMNorthwest/KLMAir FranceAir FranceBritishBritishSouth AmericaSouth AmericaLanLanAustralia/New ZealandAustralia/New ZealandQantasQantas

Possible growth to Asia andEurope out of SEA with B787AnchorageAnchoragePortlandPortlandLos AngelesLos AngelesInternationalInternationalSeattleSeattlePossible expansionout of LAX

We have a track record ofunit cost improvementsAlaska Airlines cost per ASMexcluding fuel8.73¢8.52¢8.34¢7.92¢7.0¢7.5¢8.0¢8.5¢9.0¢2001200220032004200520068.01¢7.81¢2007ContinuousImprovement7.50¢2008Estimate7.50¢

14%17%18%20%21%21%23%24%24%28%29%0%10%20%30%AirTranDeltaUnitedAmericanContinentalFrontierAlaska Air GroupUS Airways GroupNorthwestSouthwestJet BlueWe have a strong cash position andmultiple sources of additional liquidityCash as a % of RevenuesQ4 2007Note: *Calculated using unrestricted cash and short-term investments at December 31, 2007 divided byrevenue for the 12 months ended December 31, 2007.Source:  Company earnings releases and 10Qs as of Q4 2007Sources of additionalliquidity•$185 million line of creditfacility•$172 million maximum pre-delivery payment facility •Unencumbered aircraft,including  B737-800s

The Pacific Northwest and Alaska may farebetter economically than other regions-40%-20%0%20%20002001200220032004200520062007EuroAUDGBPJPYCADUSD to:As the dollar continuesto lose ground…Higher growth in real personalincome is expected3.6%1.6%2.6%3.2%4.8%2.8%3.6%4.0%0%2%4%6%2007200820092010United StatesState of WashingtonSource: Economic and Revenue Forecast Council of the State ofWashington, Feb 2008Real personal income growth forecastsHousing prices are stable0.5%1.2%-8.9%-12%-8%-4%0%4%US NationalIndexSeattlePortlandSource: Standard % Poors/Case-ShillerHomePrice Indices as of December 2007,published Feb 2008US Home Price Indices -Changes in December 2007Washington exports stand to benefitWashington State Export Data, 20075%21%64%10%Source: NAICS Export Data -Trade Stats Express DataTransportationEquipmentAll otherAgricultureComputers andElectronics

3.4%5.3%7.9%6.1%0%2%4%6%8%10%2004200520062007AAG ROIC History from 2003 to 2007Management and the Board are committedto providing returns to capital providersAdjusted for hedge MTM and unusual items

ALK shareholders have fared betterthan shareholders at other carrierssince our initial stock repurchase-31%-44%-46%-59%-23%-33%-26%-24%-15%6%-70%-60%-50%-40%-30%-20%-10%0%10%Overall change in share priceSept 13, 2007 through Feb 29, 2008-42%-51%-61%-70%-37%-42%-41%-41%-20%-20%-70%-60%-50%-40%-30%-20%-10%0%10%Overall change in share priceSept 13, 2007 through Mar 12, 2008Source: Bloomberg