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,
1997 1996 1997 1996
PRIMARY -
Net income $42,200 $32,816 $57,300 $43,611
Average number of shares outstanding 14,671 14,467 14,580 14,165
Assumed exercise of stock options reduced
by the number of shares purchased with
the proceeds from exercise of such options 128 121 123 110
Average shares as adjusted 14,799 14,588 14,703 14,275
Primary earnings per common share $2.85 $2.25 $3.90 $3.06
FULLY DILUTED -
Net income $42,200 $32,816 $57,300 $43,611
After tax interest on convertible debt 1,910 2,038 5,667 6,070
Income applicable to common shares $44,110 $34,854 $62,967 $49,681
Average number of shares outstanding 14,671 14,467 14,580 14,165
Assumed exercise of stock options 217 121 302 110
Assumed conversion of 6.5% debentures 6,151 6,151 6,151 6,151
Assumed conversion of 7.75% debentures 0 381 0 381
Assumed conversion of 6.875% debentures 1,608 1,608 1,608 1,608
Average shares as adjusted 22,647 22,728 22,641 22,415
Fully diluted earnings per common share $1.95 $1.53 $2.78 $2.22