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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K
CURRENT REPORT

Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

September 13, 2002
(Date of Report)

ALASKA AIR GROUP, INC.
(Exact name of registrant as specified in its charter)
 
Commission file number 1-8957

Delaware
(State or other jurisdiction of
incorporation or organization)

91-1292054
(I.R.S. Employer
Identification No.)

19300 Pacific Highway South, Seattle, Washington 98188
(Address of principal executive offices)
 
(206) 431-7040
(Registrant’s telephone number)

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| ITEM 9. Regulation FD Disclosure
Signature

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ITEM 9.
Regulation FD Disclosure

FORWARD-LOOKING INFORMATION

This report may contain forward-looking statements that are based on the best information currently available to management. These forward-looking statements 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. Forward-looking statements are indicated by phrases such as “will,” “should,” “the Company believes,” “we expect” or any other language indicating a prediction of future events. There can be no assurance that actual developments will be those anticipated by the Company. Actual results could differ materially from those projected as a result of a number of factors, some of which the Company cannot predict or control. For a discussion of these factors, please see Item 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2001. The Company expressly disclaims any duty to update these projections, and makes no representation as to their continued accuracy in the event it does not provide such updates.

Third Quarter 2002 Estimates
| | Forecast | | Change
| | Q3 | | Yr/Yr
Alaska Airlines | | | | | | | |
Capacity (ASMs in millions) | | | 5,196 | | | | 10.9 | %
Fuel gallons (000,000) | | | 87.2 | | | | 9.6 | %
Cost per ASM excluding fuel (cents) | | | 8.20 | | | | (2.0 | )%
For August 2002, Alaska experienced a 3.2% increase in traffic on a 3.6% increase in capacity. However, lower year-over-year load factors, combined with lower yields, resulted in a decrease in revenue per available seat mile (RASM) of 3.0% for August 2002 as compared to August 2001. For July 2002, RASM declined 5.4% as compared to July 2001.
Horizon Air | | | | | | | |
Capacity (ASMs in millions) | | | 654 | | | | 17.9 | %
Fuel gallons (000,000) | | | 14.8 | | | | 0.7 | %
Cost per ASM excluding fuel (cents) | | | 15.0 | | | | (14.2 | )%
For August 2002, Horizon experienced a 10.3% increase in traffic on a 12.7% increase in capacity. However, lower year-over-year load factors, combined with lower yields, resulted in a decrease in RASM of 9.9% for August 2002 as compared to August 2001. For July 2002, RASM declined 12.5% as compared to July 2001.

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Capacity and Traffic Estimates for 2002

Provided below are capacity (ASMs in millions) estimates for the full year of 2002.
Alaska Airlines capacity | | | 19,338 | | | | 7.9 | %
Horizon Air capacity | | | 2,395 | | | | 11.5 | %
Other Financial Information

Cash and Short-Term Investments

Cash and short-term investments amounted to approximately $685 million on August 31, 2002.

Fuel Cost per Gallon
| | Cost per | | % Change from
| | Gallon | | Prior Year
Alaska July | | $ | 0.765 | | | | (14.9 | )%
Alaska August | | $ | 0.799 | | | | (8.1 | )%
Horizon July | | $ | 0.773 | | | | (16.7 | )%
Horizon August | | $ | 0.800 | | | | (12.1 | )%
Current fuel hedge positions for Alaska and Horizon are as follows:
| | Approximate % of Expected | | Approximate Crude Oil
| | Fuel Requirements | | Price per Barrel
September — December 2002 | | | 40 | % | | | $22 |
January — December 2003 | | | 35 | % | | | $22 |
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Operating Fleet Plan

Provided below are estimated changes in the Alaska and Horizon fleets for 2002 - 2003.
| | | | | | | | | | Estimated Change During
| | | | | | On Hand | |
| | Seats | | YE 2001 | | 2002 | | 2003
Alaska Airlines | | | | | | | | | | | | | | | |
B737-200C | | | 111 | | | | 9 | | | | | | | | |
B737-400 | | | 138 | | | | 39 | | | | 1 | | | | |
B737-700 | | | 120 | | | | 16 | | | | | | | | 6 |
B737-900 | | | 172 | | | | 5 | | | | 1 | | | | 5 |
MD-80 | | | 140 | | | | 32 | | | | (1 | ) | | | (4 | )
Total | | | | | | | 101 | | | | 1 | | | | 7 |
Horizon Air | | | | | | | | | | | | | | | |
Dash 8-100/200 | | | 37 | | | | 29 | | | | (1 | ) | | | |
Dash 8-400 | | | 70 | | | | 12 | | | | 3 | | | | |
F-28 | | | 69 | | | | 10 | | | | (8 | ) | | | (2 | )
CRJ 700 | | | 70 | | | | 9 | | | | 7 | | | | 2 |
Total | | | | | | | 60 | | | | 1 | | | | — |

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ALASKA AIR GROUP, INC.

Registrant

Date: September 13, 2002 | |
/s/   Bradley D. Tilden | |

Bradley D. Tilden
Executive Vice President/Finance and Chief Financial Officer

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