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Alaska Airlines

Alaska Airlines in the flagship air carrier of Alaska and the people of Alaska. The airline flies to all of the major popluation centers in the state and is widely used by both Alaskan residents and visitors. Alaskan Airlines flies to destiantions in the western US and Mexicio. For more than 70 years, Alaska Airlines and its employees have been guided through thick and thin by a common shared commitment to integrity, caring, resourcefulness, professionalism and spirit. In the process, Alaska has grown from a small regional airline to one of the most respected in the nation. Carrying more than 12 million customers per year, Alaska’s route system spans more than 40 cities and three countries. The Alaska Airlines fleet of 102 Boeing jets is one of the youngest among all major airlines. And its reputation for outstanding service consistently earns best U.S. airline recognition from the likes of Travel + Leisure and Condé Nast Traveler magazines. The foundation of this success was laid in 1932, when Mac McGee started flying his three-seat Stinson between Anchorage and Bristol Bay, Alaska. Finances were tight, but perseverance ruled the day -- Mac and his team often worked round-the-clock, even though the next paycheck might be weeks away. Things haven’t changed that much over the years. Alaska is still differentiating itself: offering more flights than any competitor in almost every market it serves; providing a superior level of customer service; and pioneering technologies that improve on-time performance and expand safety margins. And the awards just keep on coming. To learn more about Alaska Airlines please visit their web site.

Fares to and from Alaska are now on Sale! Intra-Alaska fares start as low as $123 (USD) round-trip and fares between Alaska and the Lower 48 start as low as $309 (USD) round-trip. Seats are limited and subject to availability so book now for the best selection of flights. Additional restrictions apply, see below for details. Fly to the great outdoors on Alaska Airlines or Horizon Air and receive a coupon for $20 off a full-priced purchase of $100 or more at REI. Need new travel or camping gear? Hiking boots? Worry-free clothes that help you get away with ease? Start your journey at REI and discover the latest equipment from the top names in outdoor adventures at one of more than 80 stores nationwide, online or by phone. Have your order delivered to a store near you and the shipping is free. Many stores have full-service bike shops and climbing pinnacles. Best of all, your satisfaction is 100% guaranteed.

Alaska Air Group, Inc. (NYSE:ALK) today reported a first quarter net loss of $80.5 million, or $2.39 per diluted share, compared to a net loss of $42.7 million, or $1.59 per diluted share, in the first quarter of 2004.
First quarter results in 2005 include a charge of $144.7 million ($90.4 million, net of tax, or $2.73 per diluted share) resulting from the cumulative effect of a change in the way the company accounts for airframe and engine overhauls and a $7.4 million restructuring charge ($4.6 million, net of tax, or $0.13 per diluted share), primarily associated with a decision to terminate the lease at the company's Oakland heavy maintenance base. This quarter's results also include $90.0 million ($56.2 million, net of tax, or $1.69 per diluted share) in mark-to-market gains on fuel hedges that settle in future periods compared to $0.4 million ($0.3 million, net of tax, or $0.01 per diluted share) in 2004. Without these items, and excluding the impairment charge of $2.4 million ($1.6 million, net of tax, or $.06 per diluted share) in the first quarter of 2004, the net loss would have been $41.7 million, or $1.54 per share during the first quarter of 2005 compared to a loss of $41.4 million, or $1.54 per diluted share in the first quarter of 2004.
"Making excuses for our results would be easy based on the current environment of extremely high fuel prices, very little pricing power and a seasonally soft first quarter," said Bill Ayer, Alaska Air Group's chairman and chief executive officer. "But these realities, along with the cost reductions achieved by others in the industry, mean that we simply must have lower costs." Alaska Airlines' passenger traffic in the first quarter increased 8.9 percent on a capacity increase of 3.7 percent. Alaska's load factor increased 3.5 percentage points to 72.6 percent compared to the same period in 2004. Alaska's operating revenue per available seat mile (ASM) increased 2.6 percent, while its operating cost per ASM excluding fuel and restructuring charges decreased 0.7 percent. Alaska's pretax income for the quarter was $15.4 million. Excluding the restructuring charges of $7.4 million and the gains on fuel hedges that settle in future periods of $77.7 million in 2005 and $0.4 million in 2004, Alaska's pretax loss was $54.9 million for the quarter, compared to a pretax loss of $53.6 million in 2004. Horizon Air's passenger traffic in the first quarter increased 20 percent on a 13 percent capacity increase. Horizon's load factor increased by 4 percentage points to 69 percent compared to the same period in 2004. Horizon's operating revenue per ASM decreased 2.8 percent, while its operating cost per ASM excluding fuel and impairment charge decreased 4.4 percent. The decrease in Horizon's revenue per ASM and cost per ASM excluding fuel is largely due to the addition of Horizon's contract flying for Frontier Airlines, which began in January 2004. This flying represented 23 percent of Horizon's capacity during the first quarter and 10.1 percent of its passenger revenues compared to 16.2 percent of its capacity and 7.4 percent of its passenger revenues in the first quarter of 2004. Horizon's pretax income for the quarter was $4.6 million, compared to a pretax loss of $10.4 million in 2004. Excluding gains on fuel hedges that settle in future periods of $12.3 million and the impairment charge in 2004, Horizon's pretax loss was $7.7 million for the quarter, compared to $8.0 million in the first quarter of 2004. Alaska Air Group had cash and short-term investments at March 31, 2005, of approximately $764 million compared to $874 million at Dec. 31, 2004. A summary of financial and statistical data for Alaska Airlines and Horizon Air as well as a reconciliation of the reported non-GAAP financial measures can be found on pages 6 through 10. A conference call regarding the first quarter 2005 results will be simulcast via the Internet at 8:30 a.m. Pacific Time. It may be accessed through the company's website at alaskaair.com. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call at alaskaair.com. This report may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or our future financial performance and involve known and unknown risks and uncertainties that may cause our actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "forecast," "may," "will," "could," "should," "expect," "plan," "believe," "potential" or other similar words indicating future events or contingencies. Some of the things that could cause our actual results to differ from our expectations are: changes in our operating costs including fuel, which can be volatile; the competitive environment and other trends in our industry; our ability to meet our cost reduction goals; the outcome of the arbitration with the Air Line Pilots Association; other labor disputes; economic conditions; our reliance on automated systems; actual or threatened terrorist attacks, global instability and potential U.S. military actions or activities; changes in laws and regulations; liability and other claims asserted against us; failure to expand our business; interest rates and the availability of financing; our ability to attract and retain qualified personnel; changes in our business plans; our significant indebtedness; downgrades of our credit ratings; and inflation. For a discussion of these and other risk factors, see Item 7 of the company's Annual Report for the year ended Dec. 31, 2004, on Form 10-K. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We disclaim any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results.

Alaska Airlines is making free travel even freer for Alaskans planning to redeem Mileage Plan travel awards this spring. Starting today, residents of the state of Alaska can get a discount when they redeem both Peak and Saver Mileage Plan awards for travel from select cities to Seattle and Chicago The offer must be booked by June 1, 2005, and is valid for travel between April 25 and June 8, 2005. And it's only available online at alaskaair.com With the offer, Mileage Plan members can redeem a Coach Peak Award for 33,000 miles, instead of 40,000 miles, and a Coach Saver Award for 13,000 miles, instead of 20,000 miles. "We are pleased to be offering this discount to our frequent travelers in the state of Alaska," said Ann Ardizzone, the airline's managing director of marketing programs. "This will allow them to travel to Seattle or Chicago for 7,000 miles less than the normal award levels, which is truly a great deal. The offer is valid for travel from Anchorage, Fairbanks, Adak, Bethel, Nome, Kotzebue, Dillingham, Dutch Harbor, Kodiak, Barrow, Cordova, Yakutat, Juneau, Sitka, Petersburg, Wrangell and Ketchikan To qualify, travelers must be members of Alaska Airlines' Mileage Plan and must redeem their miles online at alaskaair.com. Under the Mileage Plan, Peak Travel Awards are valid on any flight, any day as long as space is available. Saver Travel Awards are limited and may not be available on all flights. Alaska Airlines, the nation's ninth largest carrier, and its sister carrier, Horizon Air, together serve 88 cities in Alaska, the Lower 48, Canada and Mexico. For reservations visit alaskaair.com. For more news and information, visit the Alaska Airlines Newsroom on the Internet at http://newsroom.alaskaair.com/.

Alaska Marine Highway