SEATTLE--(BUSINESS WIRE)--Jan. 7, 2003--Alaska Air Group, Inc. (NYSE:ALK) today reported December passenger traffic for its subsidiaries, Alaska Airlines and Horizon Air.

ALASKA AIRLINES

Alaska Airlines' December traffic increased 21.7 percent to 1.206 billion revenue passenger miles (RPMs) from 990.3 million flown a year earlier. Capacity during December was 1.644 billion available seat miles (ASMs), 12.2 percent higher than the 1.465 billion in December 2001.

The passenger load factor (the percentage of available seats occupied by fare paying passengers) for the month was 73.3 percent, compared to 67.6 in December 2001. The airline carried 1,256,500 passengers compared to 1,071,200 in December 2001.

RPMs for the twelve-month period totaled 13.186 billion, a 7.6 percent increase from the 12.249 billion recorded a year earlier. Capacity for the twelve months ended December 2002 increased 8.0 percent to 19.360 billion ASMs, compared to 17.919 billion in 2001.

The passenger load factor for the twelve months of 2002 was 68.1 percent, compared to 68.4 percent in 2001. The airline carried 14,153,300 passengers compared to 13,667,500 in 2001.

HORIZON AIR

Horizon Air's December traffic increased 34.1 percent to 145.7 million RPMs from 108.6 million flown a year earlier. Capacity for December was 216.9 million ASMs, 28.6 percent higher than last year's 168.7 million.

The passenger load factor for the month was 67.2 percent, compared to 64.4 percent last December. The airline carried 441,100 passengers compared to 366,900 in December 2001.

RPMs for the year ended December 2002 totaled 1.514 billion, a

• 12.1 percent increase from the 1.350 billion recorded a year earlier. Capacity for the twelve months ended December 2002 increased 13.0 percent to 2.427 billion ASMs, compared to 2.148 billion in 2001.

The passenger load factor for the twelve months of 2002 was 62.4 percent, compared to 62.9 percent in 2001. The airline carried 4,814,900 passengers, compared to 4,668,300 in 2001.

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CONTACT:	Alaska Air Group Inc.
	Jack Evans, 206/433-3134