Alaska Air Group, Inc. EXHIBIT 11 Computation of Earnings Per Common Share (In thousands, except per share) Three Months Ended March 31, 1997 1996 PRIMARY - Net income ($5,662) ($7,185) Average number of shares outstanding 14,489 13,700 Assumed exercise of stock options reduced by the number of shares purchased with the proceeds from exercise of such options 0 0 Average shares as adjusted 14,489 13,700 Primary earnings per common share ($0.39) ($0.52) FULLY DILUTED - Net income ($5,662) ($7,185) After tax interest on convertible debt 1,867 2,019 Income applicable to common shares ($3,795) ($5,166) Average number of shares outstanding 14,489 13,700 Assumed exercise of stock options 201 307 Assumed conversion of 6.5% debentures 6,151 6,151 Assumed conversion of 7.75% debentures 0 381 Assumed conversion of 6.875% debentures 1,608 1,608 Average shares as adjusted 22,449 22,147 Fully diluted earnings per common share ($0.17) ($0.23) * * * Anti-dilutive