EXHIBIT 12 Alaska Air Group, Inc. Calculation of Ratio of Earnings to Fixed Charges (In thousands, except ratios) 1998 1997 1996 1995 1994 Earnings: Income before income tax expense $204,400 $123,600 $64,349 $33,983 $40,961 Less: Capitalized interest (6,600) (5,300) (1,031) (208) (353) Add: Interest on indebtedness 21,200 33,600 38,394 51,479 46,960 Amortization of debt expense 682 685 1,224 1,100 1,368 Portion of rent under long-term operating leases representative of an interest factor 80,547 72,900 71,562 67,295 65,618 Earnings Available for Fixed Charges $300,229 $225,485 $174,498 $153,649 $154,554 Fixed Charges: Interest 21,200 33,600 38,394 51,479 46,960 Amortization of debt expense 682 685 1,224 1,100 1,368 Portion of rent under long-term operating leases representative of an interest factor 80,547 72,900 71,562 67,295 65,618 Total Fixed Charges $102,429 $107,185 $111,180 $119,874 $113,946 Ratio of Earnings to Fixed Charges 2.93 2.10 1.57 1.28 1.36