Slide Presentation from Imperial Capital Global Opportunities Conference

Imperial Capital Global Opportunities

This

presentation

may

include

forward-looking

statements

regarding

the

performance

Alaska

Air

Group

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.

November 18, 2008

Exhibit 99.2

Los Cabos

Puerto Vallarta

Manzanillo

Ixtapa / Zihuantanejo

Guadalajara

Miami

Orlando

Loreto

Mazatlan

Washington, D.C.

Boston

New York

(Newark)

Chicago

Mexico City

Dallas/Ft Worth

Palm Springs

San Diego

Las Vegas

Phoenix

Tucson

Cancun

Nome

Barrow

Prudhoe Bay

Kotzebue

Bethel

Dutch

Harbor

Sitka

Dillingham

King Salmon

Kodiak

Fairbanks

Juneau

Petersburg

Wrangell

Anchorage

Yakutat

Glacier Bay/

Cordova

Gustavus

Adak

La Paz

Vancouver

Ontario

Burbank

Orange County

Los Angeles Int'l

Long Beach

Denver

Lihue

Honolulu

Seattle

6.9 million passengers/yr.*

3,700 employees

63 aircraft

47 cities served

390 daily departures

17.2 million passengers/yr.*

9,600 employees

110 aircraft

60 cities served

425 daily departures

Data is as of Q308 except passengers/yr, which is as of December

31, 2007

Spokane

Reno

Sacramento

Portland

Boise

San Jose

San Francisco Int'l

Oakland

Ketchikan

New

Alaska

Airlines

Service:

Maui –

July 2008

Minneapolis –

October 2008

Kona –

November 2008

($8.3)

($11.0)

($2.4)

($7.6)

($5.8)

$3.0

$5.0

$1.4

($3.0)

Nov ‘08

($12)

($9)

($6)

($3)

2001

2002

2003

2004

2005

2006

2007

2008

est.

2009

est.

($68)

($31)

$55

$138

$92

$79

($13)

Nov ‘08

($88)

($100)

($50)

$50

$100

$150

2001

2002

2003

2004

2005

2006

2007

2008

est.*

2009

est.*

(in millions)

Industry

(in billions)

Fuel has moderated and analysts are

forecasting industry profits for 2009

*First Call mean estimate as of 10/29/08. Does not necessarily reflect the company’s internal forecast.

Merrill Lynch for top ten US airlines –

Nov 2008

Assumes oil at $100/bbl and $30/bbl crack spread

($5.4) July ‘08

Estimates at July 2008

($60) July ‘08

Our five point response to the

uncertain environment:

Preserve our strong balance sheet

Cut capacity and redeploy aircraft

Maximize unit revenues

Reduce fuel consumption

Control our non-fuel costs

Leverage our existing strengths

Relatively low leverage outside bankruptcy

34%

75%

78%

83%

88%

92%

93%

100%

114%

-30%

20%

70%

120%

Alaska

Air

Group

Adjusted

Debt-to-Capitalization

–

2008

Source: Company Q3 08 SEC filings

FPA-PS 090308

11%

12%

14%

15%

17%

19%

23%

29%

32%

10%

20%

30%

40%

50%

US Airways Group

AirTran

United

Delta

Jet Blue

Continental

American

Northwest

Alaska Air Group

Southwest

Strong cash position and

multiple sources of liquidity

Cash as a % of Revenues

Q3 ‘08

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

2008. As of October 21, Alaska Air Group had $1.18 billion in cash.

*Does not include 9 aircraft pledged as collateral for line of credit. Source: Company earnings releases and 10Qs as of Q3 2008

Fuel hedging cash collateral

Possible sources of

liquidity

•

$110 million available

on line of credit

•

$172 million maximum

pre-delivery payment

facility

•

6* unencumbered

aircraft, including B737-

800s and Q400s

•

Forward sale of miles

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 and redeploy capacity

forecast

year-over-year %

available seat mile (ASM) growth

Q4 ‘08

Q1 ‘09

2009 forecast

-17%

-12%

Q4 ‘08

Q1 ‘09

2009 forecast

-21%

-19%

-11%

-9%

-14%

Indicates change

in capacity

Indicates change

in departures

Seat supply is being cut, but not as

much on the West Coast

Sources: Industry -

Latest published schedules; AS –

8K filed 11-17-08

Carrier

Mainline Only

AirTran

(6%)

American

(12%)

Continental

(24%)

Delta

(9%)

Frontier

(16%)

JetBlue

(9%)

Northwest

(16%)

Southwest

United

(17%)

US Airways

(11%)

West Coast

(5%)

Alaska -

system

(7.5%)

Domestic

ASM

Chg

vs.

Spokane

Vancouver

San Diego

Butte

Bozeman

Orlando

San Francisco

Zihuatanejo

Cancun

Mazatlan

Calgary

Los Angeles

Mexico City

Los Cabos

Denver

San Jose

Puerto Vallarta

Orange County

Burbank

La Paz

Boise

Las Vegas

Loreto

San Diego

Ontario

Oakland

Long Beach

Portland

Seattle

Klamath Falls

North Bend

Eugene

Santa Rosa

Sacramento

Reno

Redmond

Discontinued markets

and decreased capacity

Jan ’07 –

Dec ‘08

Flagstaff

Anchorage

Boston

Los Angeles

Spokane

San Diego

Palm Springs

San Jose

Lihue (Kauai)

Honolulu (Oahu)

Kahului

(Maui)

Kahului

(Maui)

Kona (Hawaii)

Santa Rosa

Seattle

Portland

San Francisco

Eugene

Boise

Minneapolis

San Diego

Sacramento

Las Vegas

Cancun

Eureka

New markets

and increased capacity

Jan ’07 –

Dec ‘08

We are pulling the levers to

maximize unit revenues

•

Fare increases

•

Better yield management

•

Fuel surcharges on cargo

•

Mileage Plan (FFP) changes

•

Ancillary revenue opportunities consistent

with our brand

Fuel continues to be the wildcard

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

A young, all-737 fleet simplifies our operation

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)

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

Moving to Q400 single type fleet

~50 aircraft

December 2009

Q400

~50

Q200

70 aircraft

CRJ 700

Q400

December 2007

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

Better

Fuel gallons per passenger

Source: Bombardier

$25

$50

$75

$100

$125

Q408

2009

2010

2011

Previous Position

Current Position

Improved fuel hedge strike prices

50%

Percent hedged

26%

17%

50%

Capacity reductions will put pressure

on 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

guidance

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

7.55¢

?¢

2009

Our non-fuel costs are better than legacy

carriers’

but we have more work to do

“You’ve got to be very realistic

about where you are…

but very optimistic

about where

you can be.”

Steve Ballmer

Microsoft CEO

14.2

14.5

11.6

11.8

7.3

4.2

1.7

4.8

4.5

2.5

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

50%

100%

Greatly improved on-time

performance reduces costs

DOT on-time performance

•

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

*In a tie with Continental Airlines among North American carriers

Improved on-time, reliability and baggage

handling means higher customer satisfaction

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

•

Partners drive additional revenue

to and from international points

•

Big opportunity in Asia

Alaska Air Group is well positioned

to weather the current environment

•

Realistic about today with credible plan

•

Optimistic about tomorrow

–

Strong balance sheet

–

Young, fuel-efficient, simple fleet

–

Positioned to benefit from growth

through network of code-share partners

–

Loyal customers and two great brands

–

A track record of innovation

•

Focused on delivering shareholder returns