ESPP Open Enrollment Period – July 15, 2009 through August 15, 2009

Eligible employees can sign up for the Alaska Air Group Employee Stock Purchase Plan and make account changes during the open enrollment period. Employees who have been employed by Alaska Airlines or Horizon Air for at least one year as of August 31, 2009 are eligible. Employees may contribute a minimum of 1 percent to a maximum of 10 percent of their eligible after-tax compensation through payroll deduction.

The offering period employees are enrolling in is September 1, 2009 through August 31, 2010. Every three months (November 30, February 28) shares of Alaska Air Group common stock will be purchased with funds deducted during the prior three-month period. The price will be 15 percent off the lower of the fair market value of the stock on the first day of the offering period or on the last business day of the purchase period. Shares are held in an account at Morgan Stanley Smith Barney, the designated broker for the ESPP.

Your online election must be completed by 9:00 pm Pacific Time (midnight Eastern Time) on the last day of open enrollment - August 15, 2009. If you are unable to enroll online, you may enroll in ESPP by submitting an Enrollment/Change Form to Corporate Affairs/SEAZZ-AS no later than August 15, 2009.

For more information, call the Corporate Affairs Department at 206-392-5131 or at 206-392-5719.

Reference Materials

Please refer to the following documents when deciding whether to invest. Participation in the plan is voluntary.
AAG Employee Stock Purchase Plan Employee Guide (256k)
AAG ESPP Plan Summary (166k)
2008 Annual Report to Stockholders and 2009 Proxy Statement

Enrollment Information
To simplify online enrollment, please read and follow the website instructions provided.

If you have problems with online enrollment, you may submit an Enrollment/Change Form via U.S. Mail, company mail (SEAZZ) or fax (206.392.5807).

For more information, see the Frequently Asked Questions page. Questions related to the previous Piper Jaffray Employee Stock Purchase Plan (December 1990 – August 2002), the AAG Profit Sharing Stock Purchase Plan (1998-2000) or the current AAG Employee Stock Purchase Plan should be directed to Alaska Airlines Corporate Affairs Department at (206) 392-5719 or send an email to stockpurchaseplan@alaskaair.com .