SEATTLE--(BUSINESS WIRE)--March 30, 2001--Alaska Airlines (NYSE:ALK) today announced new redemption levels for award travel in its frequent flyer program, the Mileage Plan.

The changes, which take effect Sept. 1, 2001, will affect frequent flyer awards for peak and first class travel on Alaska and Horizon Air, as well as some international travel. Saver awards for coach travel on Alaska and Horizon will remain unchanged.

"These changes will bring our peak and first class award levels more closely in line with the rest of the industry, though they'll still be lower than our competitors," said Gregg Saretsky, Alaska's senior vice president of marketing and planning. "As a result, we'll be better able to accommodate requests for peak and first class travel, which have been in great demand because of the bargain levels we've offered in the past, particularly for first class awards."

Current redemption levels will remain valid for award travel booked by midnight, Aug. 31, 2001, for travel through July 31, 2002. Current and new redemption levels for travel awards on Alaska Airlines and Horizon Air are as follows:

                                   Current                New
Travel Award                    Redemption Level  Redemption Level(a)
------------                    ----------------  ----------------

ALASKA AIRLINES/HORIZON AIR
  U.S. & Canada Coach Saver Award  20,000 miles        Unchanged
  U.S. & Canada Coach Peak Award   35,000 miles        40,000 miles
  U.S. & Canada First Class
   Saver Award                     30,000 miles        40,000 miles
  U.S. & Canada First Class
   Peak Award                      50,000 miles        60,000 miles
  Mexico Coach Saver Award         30,000 miles        Unchanged
  Mexico Coach Peak Award          45,000 miles        60,000 miles
  Mexico First Class Saver Award   45,000 miles        60,000 miles
  Mexico First Class Peak Award    60,000 miles       120,000 miles

(a) Effective Sept. 1, 2001

Current and new Mileage Plan redemption levels for travel awards
that are changing on Mileage Plan travel partners are as follows:

                              Current                   New
Travel Award(b)            Redemption Level      Redemption Level(c)
------------               ----------------       ----------------

AMERICAN AIRLINES
 Mexico Coach Award          30,000 miles           40,000 miles
 Hawaii Coach Award          35,000 miles           40,000 miles
 Caribbean Coach Award       35,000 miles           40,000 miles
 U.S. & Canada Business
  Award                      40,000 miles           50,000 miles

BRITISH AIRWAYS
 European Coach Saver Award  40,000 miles           50,000 miles
 European Business Saver
  Award                      80,000 miles           90,000 miles
 European Business Peak
  Award                      90,000 miles          120,000 miles
 European First Class
  Saver Award               100,000 miles          125,000 miles
 European First Class
  Peak Award                125,000 miles          140,000 miles

 Africa, Middle East
  Coach Award                80,000 miles          100,000 miles
 Africa, Middle East
  Business Award            100,000 miles          140,000 miles
 Africa, Middle East First
  Class Award               125,000 miles          160,000 miles

CONTINENTAL AIRLINES
 Central America First
  Class Award                65,000 miles           80,000 miles

NORTHWEST AIRLINES
 U.S. & Canada First
  Class Award                45,000 miles           50,000 miles
 Hawaii First Class Award    65,000 miles           80,000 miles

(b) Travel awards shown for Mileage Plan travel partners are only
for redemption levels that are changing. A complete list of redemption
levels is available on the back of all Mileage Plan statements as well
as at www.alaskaair.com.

(c) Effective Sept. 1, 2001

Saver awards have seating limitations and some blackout dates, while peak awards, which are available at higher mileage levels, do not.

The Alaska Airlines Mileage Plan is consistently ranked one of the best frequent flyer programs in the industry. Miles credited to an Alaska Airlines Mileage Plan account never expire, and membership is free. Enroll by phone by calling the Mileage Plan at 1-800-654-5669. Or enroll online at www.alaskaair.com and receive 500 bonus miles.

--30--KS/se*