Horizon Air –

Capacity Changes

822

509

3,469

3,783

2,956

2,810

205

0

1,000

2,000

3,000

4,000

2006

2007

2008

48 Q400s

Horizon also has options to acquire 20 Q400 aircraft.  In its earnings call with analysts on April 24, 2008,

management stated that it would consider exercising options for additional aircraft if the expected returns

on those aircraft met Air Group’s goals for return on invested capital.

Available Seat Miles

Potential flying performed

by Alaska or a third party in

existing Horizon markets

22%

16%

Frontier contract flying

operated by Horizon

Native network

operated by Horizon

3,632

3,978

3,161

3,783

Exhibit 99.1