Slide Presentation from the Calyon US Airline Conference

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.

September 18, 2008

Calyon

U.S.

Airline

Conference

Exhibit 99.1

14%

17%

18%

22%

23%

25%

27%

28%

56%

10%

20%

30%

40%

50%

60%

United

Delta

US Airways Group

AirTran

American

Continental

Northwest

Jet Blue

Alaska Air Group

Southwest

Strong cash position and

multiple sources of liquidity

Cash as a % of Revenues

Q2 ‘08

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

As of June 30, the company had $1,006 million in cash.

Source: Company earnings releases and 10Qs as of Q2 2008

Fuel hedging cash collateral

Relatively low leverage

30%

72%

73%

74%

76%

85%

88%

89%

93%

106%

-40%

10%

60%

110%

Alaska

Air

Group

Adjusted

Debt-to-Capitalization

–

2008

Source: Company Q2 08 SEC filings

FPA-PS 090308

Alaska’s unit costs lower than legacies’

Relentless control of non-fuel unit costs

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

8.01¢

7.81¢

2007

7.50¢

2008

target

7.50 –

7.6¢

Reflects 8K guidance as of 8/21/08 SA-IR

Fuel cost increase overshadows

non-fuel cost reductions

1.5¢

1.4¢

1.6¢

2.9¢

8.7¢

8.5¢

8.3¢

7.9¢

8.0¢

2.2¢

3.3¢

4.9¢

3.4¢

7.55¢

7.5¢

7.8¢

0¢

2¢

4¢

6¢

8¢

10¢

2001

2002

2003

2004

2005

2006

2007

2008*

Fuel CASM

Non fuel CASM

2008

unhedged

fuel

CASM

forecast

($113/bbl

for

FY2008)

vs.

CASM

ex.

fuel

target

–

Sep

2008

1.15¢

cost decrease

3.40¢

cost increase

FPA-PS 091008

Alaska’s aircraft 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

Better

10.76

11.16

11.65

12.38

12.63

12.75

13.12

15.36

16.49

737-900

172 seats

737-800

157 seats

A320

149 seats

757-200

182 seats

737-700

124 seats

737-400

144 seats

A319

122 seats

MD-80

140 seats

DC-9 140

125 seats

Fuel gallons per passenger

Source: The Boeing Company

Horizon’s aircraft also 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

Better

Fuel gallons per passenger

Source: Bombardier

We are focused on increasing

unit revenues

•

Reducing and reallocating capacity

•

Increasing fares

•

Increasing ancillary revenues

9.5%

6.8%

9.4%

20.9%

5.8%

13.0%

-6.6%

-10%

-5%

10%

15%

20%

25%

2001

2002

2003

2004

2005

2006

2007

2008

4.0%

4.4%

0.1%

7.1%

7.5%

8.0%

3.5%

10%

15%

20%

25%

2001

2002

2003

2004

2005

2006

2007

2008

Reduce growth

and redeploy capacity

forecast

(year-over-year %

available seat mile (ASM) growth)

Reflects 8K guidance as of 8/21/08 SA-IR

Q4 ‘08

Q1 ‘09

2009 forecast

-6.5%

-10%

-8%

Q4 ‘08

Q1 ‘09

2009 forecast

-20%

-14%

-9%

Fourth quarter industry capacity

down significantly

Sources:

Industry

Latest

published

schedules;

Latest

capacity

forecast

Carrier

Total System

Mainline Only

AirTran

(6%)

American

(13%)

(12%)

Continental

(11%)

(24%)

Delta

(12%)

(9%)

Frontier

(12%)

(16%)

JetBlue

(9%)

Northwest

(6%)

(16%)

Southwest

United

(14%)

(17%)

US Airways

(6%)

(11%)

Industry excluding Alaska

(9%)

(11%)

Alaska

(9%)

(7%)

Domestic

ASM

Chg

vs.

Flagstaff

Prince George

Anchorage

Orlando

Boston

Los Angeles

Spokane

San Diego

Palm Springs

San Jose

Lihue (Kauai)

Honolulu (Oahu)

Kahului

(Maui)

Kahului

(Maui)

Kona

(Hawaii)

Kona

(Hawaii)

Santa Rosa

Seattle

Portland

San Francisco

Eugene

Boise

Minneapolis

San Diego

New markets

& increased capacity

Jan ’07 –

Dec ’08

New markets

& increased capacity

Jan ’07 –

Dec ’08

Sacramento

Las Vegas

Cancun

Eureka

Ancillary fee changes

Baggage

•

checked bag $25

•

Excess baggage fees increased

Ticketing & service fees

•

Airport ticketing

•

Reservations

•

Ticket changes

•

Pets

•

Unaccompanied minors

Greatly improved on-time performance

reduces costs

73.0%

76.7%

78.0%

81.6%

79.9%

78.7%

77.8%

69.7%

73.3%

72.4%

80.4%

50%

66%

83%

2005

2006

2007

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

% On time

2008

2.5

4.5

4.8

1.7

4.2

7.3

11.8

11.6

Highest in Customer Satisfaction*

•

J.D. Power and Associates North America Airlines

Satisfaction Study –

June 16, 2008

•

More than 19,000 business and leisure travelers

surveyed

•

Alaska garnered high marks for:

–

Aircraft

–

Boarding/deplaning/baggage

–

Check-in

–

Flight crews

–

Reservations

Source: PR Newswire, June 16, 2008

* Tied with Continental among US carriers

Alaska Air Group is well prepared to

weather the storm

•

Conservative balance sheet with good liquidity

•

Low unit costs relative to industry and great

progress outside of bankruptcy

•

Young, fuel-efficient, simple fleets

•

Great brands; strong operation

•

Positioned to benefit from growth through

network of code-share partners