Alaska Air (ALK) 8-K Regulation FD Disclosure

March 10, 2009

JPMorgan Aviation & Transportation

Conference

This presentation

may

include

forward-looking

statements

regarding

the

performance

of

Alaska

Air

Group

or

its

subsidiaries.  Actual results may differ materially from these projections.  Please see our most recent Annual

Report on Form 10-K for additional information concerning factors that could cause

results to differ.

Exhibit 99.1

16.8 million passengers/yr.

9,600 employees

110 aircraft

60 cities served

430 daily departures

7.4 million passengers/yr.

3,700 employees

58 aircraft

47 cities served

390 daily departures

Employees

•

Excellent careers,

retirement

security

•

One of the best

places to work

Financial Health

•

8-10% annual growth

•

10% pretax profit margin

•

“Weatherproofed”

to economic

downturns

Investors

•

Return on investment

•

New capital for

growth

Customers

•

Airline with best value

•

Operational excellence

•

Among most-respected US brands

Our long-term strategy hasn’t changed

Focused on achieving adequate ROIC

Invested Capital

Alaska

$2.5B  (110 aircraft)

Horizon

$1.0B  (58 aircraft)

Air Group

$3.5B  (168 aircraft)

History of outperforming the industry

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

-150

-100

-50

0

50

100

150

2001

2002

2003

2004

2005

2006

2007

2008

Industry

Alaska Air Group

Industry includes: (2001-2006)  ALK, AWA, AMR, CAL, DAL, NWAC, LUV, UAL, LCC

(2007-2008) AMR, ALK, CAL, DAL, NWA, JBLU, AAI, LUV, UAUA, LCC (JPMorgan)

Our strategy for the current economy

1.

Preserve our strong balance sheet

3.  Cut capacity and redeploy aircraft 

Leverage existing strengths

5.  Reduce fuel consumption

4.  Control non-fuel costs

2.  Maximize unit revenues

Relatively low leverage

outside bankruptcy

48%

75%

81%

92%

95%

99%

106%

132%

133%

-10%

40%

90%

140%

Alaska

Air

Group

Adjusted

Debt-to-Capitalization

–

Q4

2008

Source:  Company 10-Ks for FY 2008

FPA-PS

9%

10%

13%

13%

15%

16%

17%

17%

29%

0%

10%

20%

30%

40%

50%

US Airways Group

United

Air Tran

AMR

Delta

Southwest

Jet Blue

Continental

Alaska Air Group

Strong cash position and

multiple sources of liquidity

Cash as a % of Revenues

as of December 31, 2008

Possible sources of

liquidity

•

$185 million available on

line of credit

•

Pre-delivery payment

facility 

•

Unencumbered aircraft,

spare parts and engines

•

Forward sale of miles

Note:

Unrestricted

cash

and

short-term

investments

as

of

12/31/2008

divided

by

revenues

for

the

12

months

ended

12/31/2008

as

reported

in

10-Ks

and

press

releases.

Source

for

Delta

statistic

is

JPMorgan

report

2/25/09.

Our conservatism extends to hedges

Alaska primarily uses “caps”

Source: Public Data, Bloomberg 3-3-09

1

Totals are annualized or estimated from Jet or heating oil positions

2

Values shown are crude oil equivalents

Collateral data as of 12/31/08

Collateral

Hedged

$/BBL

$0

$240 million

$117 million

$69 million

$575 million

$461 million

$171 million

$1.1 billion

$965 million

Alaska

Southwest

JetBlue

AirTran

American

US Airways

Continental

Delta

United 

2009

Hedged

$/BBL

50%   $76

10%   N/A

8%

$69

33%

$62

20%

$94

14%   $135

23%   $122

63%   $82

44%   $104

2010

Hedged

$/BBL

33%     $70

10%

N/A

-

-

5%

$67

-

-

-

-

-

-

-

-

-

-

2011

2012

Hedged

$/BBL

11%      $80

10%

N/A

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Hedged

$/BBL

-

-

10%

N/A

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2

2

2

2

2

1

1

1

1

1

1

1

Maximizing revenues is our

2009 Key Initiative

•

Better yield management

•

Mileage Plan (FFP) changes

•

Advertising

•

Ancillary revenue opportunities consistent

with our brand

-20%

-15%

-10%

5%

0%

5%

10%

2008

Actual

-15%

-10%

-5%

O%

5%

10%

2008

Actual

Capacity reduced and redeployed

year-over-year %

available seat mile (ASM) growth

IR

-10%

-7%

Q109

2009

forecast

0%

Q109

2009

forecast

-15%

-9%

-9%

Q109

2009

forecast

-17%

-12%

Q109

2009

forecast

-21%

-11%

Departures

Capacity

Capacity down, but West Coast

remains competitive

Sources:

Industry

-

Latest

published

schedules

–

Updated

for

Q109

ASM Change Q1 2009 vs. Q1 2008

-11.0%

-4.0%

-8.0%

-14.0%

-16.0%

-2.0%

-11.0%

1.0%

-20%

-16%

-12%

-8%

-4%

0%

4%

Domestic U.S.

Mainline

West Coast

Mainline

SEA to

Bay Area

SEA to

LA Basin

Alaska

Industry

Redeployments improve our network

Capacity reductions put pressure

on non-fuel unit costs

Cost per available seat mile

excluding fuel

8.73¢

8.52¢

8.33¢

7.92¢

7.0¢

7.5¢

8.0¢

8.5¢

9.0¢

2001

2002

2003

2004

2005

2006

8.01¢

7.81¢

2007

7.50¢

2008

7.49¢

8.10¢

2009

guidance

2009 CASM ex fuel per guidance issued with Q4 2008 earnings release.

4

6

8

10

12

500

750

1000

1250

1500

1750

2000

Stage Length (miles)

Alaska Mainline CASM ex Fuel by stage length trendline

Southwest

AirTran

Alaska

American

United

Continental

Jet Blue

US Airways

Delta

Non-fuel costs better than legacies’

but more work needed

Source: Q4 08 earnings releases

Major Airline CASM ex Fuel by Stage Length

Twelve months ending December 2008

Source: 10K reports, as of Dec. 31, 2008; Delta number from 4Q 08

earnings release; United number from 2007 10-K

Young, all-737 fleet simplifies

our operation, cuts costs

15

13

12.3

11.8

10.1

9.4

7.3

5.6

3.6

0

3

6

9

12

15

18

American

United

Delta

US Air

Southwest

Continental

Alaska

AirTran

JetBlue

Average fleet age (years)

$0

$25

$50

$75

$100

$125

$150

Decline in fuel prices will help

offset lower RASM

$1 per barrel =

$9 million pretax

$45 per barrel now

$100 per barrel avg

in 2008

$5 per barrel =

1.3% RASM

Alaska’s aircraft most

fuel-efficient in operation today

•

Alaska Domestic Mission Rules

•

Nominal fuel burn

•

Pax/Bag weight = 220 lb

•

100% load factor

Better

10.76

11.16

11.65

12.38

12.63

12.75

13.12

15.36

16.49

3

8

13

18

737-900

172 seats

737-800

157 seats

A320  

149 seats

757-200

182 seats

737-700

124 seats

737-400

144 seats

A319  

122 seats

MD-80

140 seats

DC-9 140

125 seats

Fuel gallons per passenger

Source: The Boeing Company

Horizon’s aircraft among

the most fuel-efficient

5.8

6.2

6.7

7.1

7.2

7.3

7.7

10.6

3

4

5

6

7

8

9

10

11

     Q400  

76 seats

CRJ900

88 seats

      E190  

99 seats

CRJ700

70 seats

    Q200   

37 seats

CRJ200

50 seats

     E170   

72 seats

    B1900  

19 seats

•

400 statute miles

•

100% load factor

Better

Fuel gallons per passenger

Source: Bombardier

Employees

•

Excellent careers,

retirement

security

•

One of the best

places to work

Financial Health

•

8-10% annual growth

•

10% pretax profit margin

•

“Weatherproofed”

to economic

downturns

Investors

•

Return on investment

•

New capital for

growth

Customers

•

Airline with best value

•

Operational excellence

•

Among most-respected US brands

This is a “people”

business

•

J.D. Power and Associates North America Airlines

Satisfaction Study –

June 16, 2008

•

More than 19,000 business and leisure travelers

surveyed

•

Alaska garnered high marks for:

–

Aircraft

–

Boarding/deplaning/baggage

–

Check-in

–

Flight crews

–

Reservations

Source: J.D. Power & Associates, June 2008

*In a tie among North American carriers

Highest in Customer Satisfaction*

2007

Program of the Year

Best Elite-Level

Program

Best Web Site

2006

Best Elite-Level

Program

Best Web Site

Best Member 

Communications

2005

Best Elite-Level

Program

Best Member

Communications

Award-Winning Mileage Plan

2004

Best Program

Best Web Site

Best Member

Communications

2003

Best Program

Best Member

Communications

2002

Best Program

Best Award

Best Website

2001

Best Award

Best Member

Communications

World class partners drive

additional revenue and increase

network utility

Alaska Air Group well positioned

to weather the current environment

•

Track record of good stewardship

•

Realistic about today

•

Optimistic about tomorrow

–

Strong balance sheet

–

Young, fuel-efficient, simple fleet

–

Positioned to benefit from growth                              

through network of code-share partners

–

Preferred product

–

Loyal customers and two great brands

•

Focused on shareholders