<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALASKA AIR
GROUP INC. SECOND QUARTER 1998 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                          152700
<SECURITIES>                                    197400
<RECEIVABLES>                                    94200
<ALLOWANCES>                                         0
<INVENTORY>                                      44000
<CURRENT-ASSETS>                                583600
<PP&E>                                         1390100
<DEPRECIATION>                                  431100
<TOTAL-ASSETS>                                 1686900
<CURRENT-LIABILITIES>                           558400
<BONDS>                                         183300
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         29000
<OTHER-SE>                                      687100
<TOTAL-LIABILITY-AND-EQUITY>                   1686900
<SALES>                                         901300
<TOTAL-REVENUES>                                901300
<CGS>                                           816200
<TOTAL-COSTS>                                   816200
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               12900
<INCOME-PRETAX>                                  86000
<INCOME-TAX>                                     34000
<INCOME-CONTINUING>                              52000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     52000
<EPS-PRIMARY>                                     2.53
<EPS-DILUTED>                                     2.07