Select Slides from JPMorgan Aviation and Transportation Conference

13.73¢

12.34¢

12.50¢

13.76¢

13.94¢

12.51¢

12.19¢

13.35¢

14.48¢

$2.83

$0.71

$0.86

$0.75

$1.97

$2.17

$1.73

$1.21

$0.90

0¢

10¢

20¢

30¢

40¢

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Yield

Jet Fuel Price

The industry problem: Jet fuel

increases are outpacing fare increases

Source: ATA and U.S. Energy Information Administration

Yield is trip length adjusted (2000 base) in cents per revenue passenger mile

Exhibit 99.2

Alaska is well prepared to weather

another downturn

•

Strong hedge portfolio

•

Young, fuel-efficient, simple fleet

•

Strong network of codeshare partners, poised to

benefit from Trans-Pac growth

•

Good progress with cost reduction

•

Conservative balance sheet with strong liquidity

•

The PNW and Alaska may fare better economically

than other regions

•

Management team committed to shareholder returns

Air Group has the second best hedge

position in the industry

Source: Public Data, Bloomberg. May not include recent changes by other airlines.

Totals are annualized or estimated from Jet or heating oil positions.

Values shown are crude oil equivalents.

Note: The information above is derived from information available at the time this slide was created. Although there may

some

inaccuracies

the

data

for

other

carriers,

management

does

not

believe

would

change

the

Company’s

relative

position.

1Q08

2008

2009

Hedged

$/BBL²

70%

$51

50%

$74

21% $80

26%

$90

24%

$79

30%

$82

25%

$90

9% $92

24% $90

18%

$93+

13%

$90

Hedged

$/BBL²

55%

$51

13%

$83

$100

$86

Southwest

Alaska

jetBlue¹

AirTran¹

American

US Airways¹

Frontier¹

Continental¹

Delta1

Northwest

United¹

Hedged

$/BBL²

75%

$51

50%

$67

35%

$77

37%

$90

35%

$77

50%

$78

22%

$64

22%

$90

24%

$90

45%

$88+

13%

$92

An all-737 fleet by year-end

December 2008

737-800

737-700

737-900

737-400

All-737 Fleet

116 aircraft

17.5

12.8

10.8

9.4

7.6

3.1

Northwest

American

United

Delta

US Air

Continental

Southwest

Alaska 2009

AirTran

JetBlue

Average fleet age (years)

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

Alaska’s aircraft are the most

fuel-efficient in operation today

•

Alaska Domestic Mission Rules

•

1,000 statute miles

•

Nominal fuel burn

•

Pax/Bag weight = 220 lb

•

100% load factor

Source: The Boeing Company

Better

13.12

12.63

16.49

15.36

12.75

11.65

11.16

10.76

12.38

A319

122 seats

737-700W

124 seats

DC-9 140

125 seats

MD-80 140

seats

737-400

144 seats

A320

149 seats

737-800W

157 seats

737-900W

172 seats

757-200

182 seats

Fleet changes and hedges significantly

reduce fuel costs per ASM

Fuel cost per ASM

oil @ $100 per barrel

2.9¢

4.6¢

2.4¢

4.2¢

3.9¢

Alaska 2005

Alaska 2008

Raw

Economic

Raw

w/2005

fleet

Economic

Raw

in 2008

Raw cost

increase = ~60%

Fleet changes = .4¢

(about $100 million)

Horizon’s fleet is being simplified

Q200

69 aircraft

CRJ 700

Q400

December 2006

68 aircraft

August 2009

CRJ 700

Q400

Horizon’s aircraft are among

the most fuel-efficient

5.8

6.2

6.7

7.1

7.2

7.3

7.7

10.6

Q400

76 seats

CRJ900

88 seats

E190

99 seats

CRJ700

70 seats

Q200

37 seats

CRJ200

50 seats

E170

72 seats

B1900

19 seats

•

400 statute miles

•

100% load factor

Source: Bombardier

Better

Fuel gallons per passenger

Strong partnerships position us well to

capitalize on Trans-Pac growth

Major Domestic

International

International Mileage Plan Only

Regionals

Source: AAG revenue reports and APGDat. Size of line indicated relative volume.

Los Cabos

Puerto Vallarta

Manzanillo

Guadalajara

Orlando

Loreto

Mazatlan

Chicago

Mexico City

Palm Springs

San Diego

Las Vegas

Phoenix

Tucson

Cancun

La Paz

Vancouver

Lihue

Honolulu

Miami

Washington, D.C.

Boston

New York

(Newark)

Dallas/Ft Worth

Denver

Spokane

Reno

Sacramento

Boise

San Jose

Oakland

Nome

Barrow

Prudhoe Bay

Kotzebue

Bethel

Dutch

Harbor

Sitka

Dillingham

King Salmon

Kodiak

Fairbanks

Juneau

Petersburg

Wrangell

Anchorage

Yakutat

Glacier Bay/

Cordova

Gustavus

Adak

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

Possible growth to Asia and

Europe out of SEA with B787

Anchorage

Portland

Los Angeles

International

Seattle

Possible expansion

out of LAX

We have a track record of

unit cost improvements

Alaska Airlines cost per ASM

excluding fuel

8.73¢

8.52¢

8.34¢

7.92¢

7.0¢

7.5¢

8.0¢

8.5¢

9.0¢

2001

2002

2003

2004

2005

2006

8.01¢

7.81¢

2007

Continuous

Improvement

7.50¢

2008

Estimate

7.50¢

14%

17%

18%

20%

21%

23%

24%

28%

29%

10%

20%

30%

AirTran

Delta

United

American

Continental

Frontier

Alaska Air Group

US Airways Group

Northwest

Southwest

Jet Blue

We have a strong cash position and

multiple sources of additional liquidity

Cash as a % of Revenues

Q4 2007

Note: *Calculated using unrestricted cash and short-term investments at December 31, 2007 divided by

revenue for the 12 months ended December 31, 2007.

Source: Company earnings releases and 10Qs as of Q4 2007

Sources of additional

liquidity

•

$185 million line of credit

facility

•

$172 million maximum pre-

delivery payment facility

•

Unencumbered aircraft,

including B737-800s

The Pacific Northwest and Alaska may fare

better economically than other regions

-40%

-20%

20%

2000

2001

2002

2003

2004

2005

2006

2007

Euro

AUD

GBP

JPY

CAD

USD to:

As the dollar continues

to lose ground…

Higher growth in real personal

income is expected

3.6%

1.6%

2.6%

3.2%

4.8%

2.8%

3.6%

4.0%

2007

2008

2009

2010

United States

State of Washington

Source: Economic and Revenue Forecast Council of the State of

Washington, Feb 2008

Real personal income growth forecasts

Housing prices are stable

0.5%

1.2%

-8.9%

-12%

-8%

-4%

US National

Index

Seattle

Portland

Source: Standard % Poors/Case-Shiller

Home

Price Indices as of December 2007,

published Feb 2008

US Home Price Indices -

Changes in December 2007

Washington exports stand to benefit

Washington State Export Data, 2007

21%

64%

10%

Source: NAICS Export Data -

Trade Stats Express Data

Transportation

Equipment

All other

Agriculture

Computers and

Electronics

3.4%

5.3%

7.9%

6.1%

10%

2004

2005

2006

2007

AAG ROIC History from 2003 to 2007

Management and the Board are committed

to providing returns to capital providers

Adjusted for hedge MTM and unusual items

ALK shareholders have fared better

than shareholders at other carriers

since our initial stock repurchase

-31%

-44%

-46%

-59%

-23%

-33%

-26%

-24%

-15%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

10%

Overall change in share price

Sept 13, 2007 through Feb 29, 2008

-42%

-51%

-61%

-70%

-37%

-42%

-41%

-20%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

10%

Overall change in share price

Sept 13, 2007 through Mar 12, 2008

Source: Bloomberg