#1Alaska Air Group Brandon Pedersen - EVP Finance and CFO Lavanya Sareen - MD, Investor Relations Bank of America Merrill Lynch 2015 Transportation Conference Alaska#2Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on, and include statements about, the Company's estimates, expectations, beliefs, intentions, and strategies for the future, and are not guarantees of future performance. Forward- looking statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Please refer to the risk factors described in Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. 2 Alaska#3We are safe... 0.0 900ER 10241 READY SAFE GO N471AS Alaska Airlines √#4We are on-time... #10 TIME ON " FLIGHTSTATS ERICH121YI2 € Alaska#5We have led the industry in on-time performance... 2010 Q #1ON TIME FLIGHTSTATS 5 2012 #1ON TIME FLIGHTSTATS 2014 #1ON TIME FLIGHTSTATS 2011 #1ON TIME FLIGHTSTATS 2013 #ON TIME FLIGHTSTATS CONSISTENT HIGH ON-TIME PERFORMANCE 72.4% 78.3% 82.9% 87.6% 88.2% 87.5% 87.0% Alaska is leading the industry thus far in 2015 86.0% 2007 2008 2009 2010 2011 2012 2013 2014 Alaska#6...and several other key operational metrics 6 INDUSTRY-LEADING COMPLETION RATE ~2,000 Flights 98.3% 2008 98.9% 2012 99.3% 2014 FIRST AIRLINE WITH A 20 MINUTE BAG GUARANTEE FASTER THAN THE SPEED OF 20 MINUTES GUARANTEED. 20 MINUTES OR LESS LEARN MORE O 20 Alaska#72014 Airline Scorecard | Rankings of major carriers in key operational areas, best to worst. 2-hour tarmac delays Mishandled baggage Southwest Virgin Amer. Alaska RK 1 3 We have been ranked #1 airline by The Wall Street Journal on key operational and customer metrics two years in a row 2 Virgin Amer. 5 6 Overall rank 7 Alaska Delta On-time arrivals jetBlue Southwest Frontier American Alaska Delta Canceled flights Virgin Amer. Virgin Amer. jetblue American Frontier Southwest United United United Southwest Sources: On-time and canceled flights data for full year 2014 from masFlight. Includes regional affiliate flights. Extreme delays, which are 45 minutes or longer, compiled by FlightStats Inc. Two-hour tarmac delays, mishandled baggage, and consumer complaints from Department of Transportation based on 12 months ended in November. DOT involuntary-bumping data 12 months through September. Frontier Alaska Southwest Delta jetblue American Extreme delays United Alaska Delta Virgin Amer. Southwest jetBlue Frontier American Frontier Virgin Amer. Delta jetblue United Frontier jetblue Delta American Alaska American United Involuntary bumping Virgin Amer. jetblue Alaska Delta American Southwest Frontier United Fewest Complaints Alaska Southwest Delta Virgin Amer. jetblue American United Frontier The Wall Street Journal THE WALL STREET JOURNAL. Alaska Airlines #1 two years running, ahead of biggest U.S. carriers Alaska#8Our people are aligned with the company... 8 COMBINED INCENTIVE PAY $88M $105M 2012 ~ 1 month of pay per employee $116M 2013 2014 PERFORMANCE BASED PAY ▪ 70% Profit ▪ 10% Cost Ex-fuel ▪ 10% Customer Satisfaction 10% Safety OPERATIONAL PERFORMANCE REWARDS ▪ On-time Performance ▪ Customer Satisfaction Goals Everyone across the company participates in the same incentive program#9And they are taking great care of our customers Alaska Beyond 10 TM H RISTA Flight Amenities Alaska#10We have been ranked #1 in customer satisfaction by J.D. Power for the 7th year in a row... HAESE CUSTOMER SATIS LD. POWER AND AREOFFICE T ALASKA AIRLINES 10 HIGHEST CUSTOMER SATIS J.D.POWER AMERICA FRAESTRINAL NETWOR PRESENTED TO ALASKA AIRLINES OUR AND AMO HAMERICA IGHEST CU SATISE CUSTOMER S J.D.POWER AND ASSOCIATIE TRADITIONAL NETWORK PRESENTED TO ALASKA AIRLINES BYAD POWER AND ASSO NORTH CUSTOMER HIGHEST C SATISFACTION J.D.POWER AND ASSOCIATESO AMERICA TRADITIONAL CARRIER PRESENTED TO ALASKA AIRLINES BY JD POWER AND ASSOCIATES CUSTOMER SATISFACTION J.D.POWER AND ASSOCIATES FRADITIONAL PRESENTED TO ALASKA AIRLINES POWER AND ASSOCIATES HORK CARRIER-26 CUSTOMER SATISFACTION I.D. POWER AND LINOCEATED TRADITY TONAL NETW PROSENTED T ALASKA AIRLINES POWING ÁŠIO AMBOCÍA "HIGHEST IN CUSTOMER SATISFACTION AMONG TRADITIONAL CARRIERS IN NORTH AMERICA, SEVEN YEARS IN A ROW" CUSTOMER A SATISFACTION I.D.POWER WAS NO ALASKA AIRLINES k CARMAY C STA Flight Amenities Alaska#11We have been ranked #1 in customer satisfaction by J.D. Power for the 7th 8th year in a row... ASTOLER& HIGHEST CUST 10 L.D.POWE ALASKA AR CUSTOMER SA I.D. POWE THE CLINCIA ALASKA AIR GHEST SOMER SA EST CUST J.D. POWE ANDERSOCIA NORTH AMERI HIGHEST CU CUSTOMER SATISFACTION AND ASSOCIATES TRADITIONAL NETWORK CARRIER PRESENTED TO ALASKA AIRLINES 2015 BY J.D. POWER AND ASSOCIATES D.POWER WE FEELITAVER AIRLINES TOMER SATISFAC D. POWER AND STIGETAFER SKA AIRLINES USTOM TON D. POWER AND HACEKTR CUSTOMER SATISFACTION D. POWER SEE ALESTINE "Highest in Customer Satisfaction Among Traditional Carriers in North America, Eight Years in a Row." NTED TO C STA Flight Amenities Alaska#12These strengths have helped us more than double our revenue over the last 12 years... 12 $2.4B $2.3B 2003 $2.7B $3.0B $2.5B $2.7B 2004 2005 $3.3B $3.1B 2006 7.4% CAGR ■Pax Revenue ■ Other Revenue $3.6B $3.5B $3.3B 2007 $3.4B 2008 $3.4B $3.8B $3.1B $3.3B 2009 2010 $4.3B $3.7B Alaska is a growth company 2011 $4.6B $5.0B $4.0B $4.3B 2012 2013 $5.4B $4.5B 2014 Alaska