SEATTLE - Alaska Air Group Inc. today reported December and full-year operational results on a consolidated basis, for its mainline operations operated by subsidiaries Alaska Airlines Inc. and for its regional flying operated by subsidiary Horizon Air Industries Inc. and third-party regional carriers SkyWest Airlines and Peninsula Airlines.

On Jan. 11, 2018, Alaska and Virgin America consolidated their operations onto a Single Operating Certificate. Results for Alaska and Virgin America have been combined into a single mainline operation.

AIR GROUP

On a combined basis for all operations, Air Group reported a 0.4 percent decrease in traffic on a 0.3 percent decrease in capacity compared to December 2017. Load factor decreased 0.1 points to 82.2 percent.

The following table shows the operational results for December and full-year 2018, compared to the prior-year periods:

December

Full-Year

2018 2017 Change 2018 2017 Change

Revenue passengers (000)

3,696 3,718 (0.6)% 45,802 44,005 4.1%

Revenue passenger miles RPM (000,000) “traffic”

4,489 4,505 (0.4)% 54,673 52,337 4.5%

Available seat miles ASM (000,000) “capacity”

5,461 5,475 (0.3)% 65,335 62,070 5.3%

Passenger load factor

82.2% 82.3% (0.1) pts 83.7% 84.3% (0.6) pts

MAINLINE

Mainline reported a 2.7 percent decrease in traffic on a 2.7 percent decrease in capacity compared to December 2017. Load factor was flat compared to December 2017. Mainline also reported 81.9 percent of its flights arrived on time in December 2018, compared to 83.1 percent reported in December 2017.

Mainline operational results reflect both Alaska and Virgin America combined. The following table shows mainline operational results for December and full-year 2018, compared to the prior-year periods:

December

Full Year

2018 2017 Change 2018 2017 Change

Revenue passengers (in thousands)

2,795 2,946 (5.1)% 35,603 34,510 3.2%

RPMs (in millions)

4,036 4,149 (2.7)% 49,781 48,236 3.2%

ASMs (in millions)

4,885 5,021 (2.7)% 59,187 56,943 3.9%

Passenger load factor

82.6% 82.6% — pts 84.1% 84.7% (0.6) pts

On-time arrivals as reported to U.S. DOT(1)

81.9% 83.1% (1.2) pts 82.6% 79.1% 3.5 pts

REGIONAL

Regional traffic increased 27.2 percent on a 26.9 percent increase in capacity compared to December 2017. Load factor increased 0.2 points to 78.6 percent. Alaska’s regional partners also reported 78.9 percent of flights arrived on time in December 2018, compared to 80.4 percent in December 2017.

The following table shows regional operational results for December and full-year 2018, compared to the prior-year periods:

December

Full Year

2018 2017 Change 2018 2017 Change

Revenue passengers (in thousands)

901 772 16.7% 10,199 9,495 7.4%

RPMs (in millions)

453 356 27.2% 4,892 4,101 19.3%

ASMs (in millions)

576 454 26.9% 6,148 5,127 19.9%

Passenger load factor

78.6% 78.4% 0.2 pts 79.6% 80.0% (0.4) pts

On-time arrivals(1)

78.9% 80.4% (1.5) pts 83.0% 80.1% 2.9 pts