<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALASKA AIR
GROUP INC. THIRD QUARTER 1996 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                           51900
<SECURITIES>                                     79400
<RECEIVABLES>                                    77800
<ALLOWANCES>                                         0
<INVENTORY>                                      46300
<CURRENT-ASSETS>                                325000
<PP&E>                                         1214800
<DEPRECIATION>                                  358000
<TOTAL-ASSETS>                                 1331900
<CURRENT-LIABILITIES>                           439000
<BONDS>                                         452900
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         17200
<OTHER-SE>                                      260500
<TOTAL-LIABILITY-AND-EQUITY>                   1331900
<SALES>                                        1233000
<TOTAL-REVENUES>                               1233000
<CGS>                                          1135600
<TOTAL-COSTS>                                  1135600
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               30200
<INCOME-PRETAX>                                  76000
<INCOME-TAX>                                     32400
<INCOME-CONTINUING>                              43600
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     43600
<EPS-PRIMARY>                                     3.06
<EPS-DILUTED>                                     2.22