ex99_1.htm

This presentation may include forward-looking statements regarding the performance of Alaska Air Group or its
subsidiaries. Actual results may differ materially from these projections. Please see our most recent Annual
Report on Form 10-K for additional information concerning factors that could cause results to differ.

June 18,2008

Merrill Lynch Global Transportation Conference

Alaska Air Group Update

• How is Alaska Air Group doing in the current
industry crisis?

• Why is Alaska better positioned to weather the
current storm?

• What are we doing to position ourselves for the
long term?

(in millions)

Industry
(in billions)

Estimated industry losses will rival or exceed 9/11

*First Call mean estimate as of 6/11/08. Does not necessarily reflect the company’s internal forecast.

Merrill Lynch estimate 6/10/08

Q1 adjusted net result

(in millions)

Q1 fuel cost*

(in millions)

* Net of hedging

Rapidly rising fuel is the cause

Source: Bloomberg

Oil as we knew it

Source: Bloomberg

Our world has changed

$100/barrel
increase
or
$1 billion
annual
raw fuel cost
(crude portion)

$1 per barrel
= $10 million of
pretax income

Source: Bloomberg, as of 6/12/08

West Coast refinery margin also increased

75¢/gallon
increase
or
$300 million
annual cost
(unhedged)

1¢/gallon
= $4 million to pretax
net income

Fuel % of revenue

Assumes $135/bbl thru 12/08 with 81¢/gal crack (avg $123.05/bbl unhedged for FY 2008)

Also assumes 2008 revenues same as 2007 for comparison purposes only. Not to be taken

as guidance.

Cberry 6-16-08

Fuel is taking a bigger bite out of
revenue than ever before

Then Now

(2003) (2008)

*Applies MD-80 fuel burn for MD-80 at maximum stage length to

Seattle-Newark trip

Assumes 80% load factors and no fuel hedge benefit STackett 6-16-08

MD-80* 42 196

MD-80 19 88

Fuel cost per passenger is about
4.5 times the cost in 2003

MimiHoover AHarrison 6-16-08

Actively managing capacity

• Reduced capacity 4.8% for Alaska mainline, 10.6% for
purchased capacity flying, and 12.5% for Horizon

• Redeployed 5% of Alaska’s and 6% of Horizon’s
capacity

• Accelerated MD-80 retirement to August 25

• Flying slower -- adding just 2 minutes to Alaska’s
flights could save almost $6 million annually in fuel

Reduce growth
and redeploy capacity

forecast

(year-over-year % available seat mile (ASM) growth)

was -4.0%

is now -8.9%

was 3.0%

is now 1.2%

Cost per available seat
mile

excluding fuel

8.73¢

8.52¢

8.33¢

7.92¢

7.0¢

7.5¢

8.0¢

8.5¢

9.0¢

2001

2002

2003

2004

2005

2006

7.81¢

2007

Continuous

improvement

2008

target

7.50¢

Continued control of non-fuel unit costs

Cash as a % of Revenues
Q1 ‘08

Note: Calculated using unrestricted cash and short-term investments at March 30, 2008 divided by revenue for the 12 months ended March 30, 2008.

Alaska Air Group had $990 million in cash as of the date of this filing.

Sources of additional
liquidity

• $185 million line of credit

• $172 million maximum pre-
delivery payment facility

• 10 unencumbered aircraft,
including B737-800s and Q400s

• Unencumbered real estate

• Spare parts

• Forward sale of miles

Source: Company earnings releases and 10Qs as of Q1 2008 Psundaresan/JSchaefer

Strong cash position and
multiple sources of liquidity

Alaska Air Group Adjusted Debt-to-Capitalization - Q1 2008

Source: Company Earnings Releases; AAG Board Deck PSundaresan

Relatively low leverage

1 Totals are annualized or estimated from Jet or heating oil positions. Assumes a heating oil crack spread of
41¢/gal and a jet fuel crack spread of 60¢/gal.

2 Values shown are crude oil equivalents.

3 2008 column reflects fuel hedge data for Q2-Q4 2008.

2008

2009

Hedged $/BBL2

70% $51

50% $76

34% $90

50% $99

30% $75

31% $84

9% $92

40% $102

30% $104

25% $90

Hedged $/BBL2

55% $51

28% $104

- -

20% $97

- -

2% $95

- -

10% $86

- -

Southwest

Alaska

jetBlue1

AirTran1

American

US Airways1

Continental1

Delta1

Northwest

United1

Source: Public Data, Bloomberg

Air Group has the second best hedge
position in the industry

Source: 10K reports as of Dec. 31, 2007

December 2008

737-800

737-700

737-900

737-400

All-737 Fleet

116 aircraft

Average fleet age (years)

An all-737 fleet by September

• Alaska Domestic Mission Rules

• 1,000 statute miles

• Nominal fuel burn

• Pax/Bag weight = 220 lb

• 100% load factor

Better

Fuel gallons per passenger

Source: The Boeing Company

Alaska’s aircraft most
fuel-efficient in operation today

~50 aircraft

December 2009

Q400
~50

Q200

70 aircraft

CRJ 700

Q400
33

December 2007

Moving to Q400 single type fleet by 2010

For our customers:

• Fast

− 415 mph cruise speed

− Pure jet block times @ 500 miles

• Quiet and comfortable

• Prop and ANVS technology

For our business plan:

• Cost-efficient

− Best economics of any regional
aircraft

• Flexible/High Performance

− Airfield access

− Low-visibility technology

For the environment:

• Fuel-efficient, quieter, greener

Source: Bombardier

The Q400:
The right aircraft at the right time

• 400 statute miles

• 100% load factor

Better

Fuel gallons per passenger

Source: Bombardier

Horizon’s aircraft are among the
most fuel-efficient

Guadalajara

Orlando

Loreto

Chicago

Palm Springs

San Diego

Las Vegas

Phoenix

Tucson

Cancun

Vancouver

Lihue

Honolulu

Miami

Washington, D.C.

Boston

New York
(Newark)

Dallas/Ft Worth

Denver

Spokane

Reno

Sacramento

Boise

San Jose

Oakland

Nome

Barrow

Kotzebue

Bethel

Sitka

Fairbanks

Juneau

Petersburg

Wrangell

Yakutat

Glacier Bay/

Cordova

Gustavus

Ketchikan

Partners drive additional revenue
to AAG from international points;
big opportunity in Asia

Japan/Asia

Northwest

Cathay

Ontario

Burbank

Orange County

Long Beach

Los Angeles Int'l

Seattle

Portland

San Francisco Int'l

Caribbean/South America

American

Europe/Middle East/Africa

Northwest/KLM

Air France

British

South America

Lan

Australia/New Zealand

Qantas

2008

3rd

4th

10th

12th

17th

19th

5th

Greatly improved on-time performance

Alaska Air Group is well prepared
to weather the storm

• Conservative balance sheet with good liquidity

• Young, fuel-efficient, simple fleets

• Strong fuel hedge portfolio

• Good progress with cost reduction

• Strong network of code-share partners,
poised to benefit from Trans-Pac growth

• Management team committed to strong
financial position and performance

• Reputation for outstanding customer service and
industry-leading value