Alaska Air Group, Inc. EXHIBIT 11
Computation of Earnings Per Common Share
(In thousands, except per share)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
PRIMARY -
Net income $32,816 $27,352 $43,611 $18,033
Average number of shares outstanding 14,467 13,509 14,165 13,440
Assumed exercise of stock options reduced
by the number of shares purchased with
the proceeds from exercise of such options 121 66 110 10
Average shares as adjusted 14,588 13,575 14,275 13,450
Primary earnings per common share $2.25 $2.01 $3.06 $1.34
FULLY DILUTED -
Net income $32,816 $27,352 $43,611 $18,033
After tax interest on convertible debt 2,038 2,580 6,070 6,868
Income applicable to common shares $34,854 $29,932 $49,681 $24,901
Average number of shares outstanding 14,467 13,509 14,165 13,440
Assumed exercise of stock options 121 66 110 10
Assumed conversion of 6.5% debentures 6,151 6,151 6,151 2,141
Assumed conversion of 7.75% debentures 381 446 381 487
Assumed conversion of 6.875% debentures 1,608 1,608 1,608 1,608
Assumed conversion of 7.25% notes 0 1,254 0 2,745
Average shares as adjusted 22,728 23,034 22,415 20,431
Fully diluted earnings per common share $1.53 $1.30 $2.22 $1.22