UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549
FORM 10-Q

(Mark One)
(X)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995.
OR
(  )TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from  . . . . . .  to  . . . . . .

Commission file number  1-8957

ALASKA AIR GROUP, INC.
(Exact name of registrant as specified in its charter)

Delaware                               91-1292054
(State or other jurisdiction of               (I.R.S. Employer
incorporation or organization)               Identification No.)

19300 Pacific Highway South, Seattle, Washington 98188
(Address of principal executive offices)

Registrant's telephone number, including area code: (206) 431-7040

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes  X  No ___

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

The registrant has 13,560,951 common shares, par value $1.00, outstanding
at September 30, 1995.

PART I.  FINANCIAL INFORMATION
ITEM 1.  Financial Statements
Attached are the following Alaska Air Group, Inc. (the Company or Air
Group) unaudited financial statements: (i) consolidated balance sheets as
of September 30, 1995 and December 31, 1994; (ii) consolidated statements
of income for the quarters and nine months ended September 30, 1995 and
1994; (iii) consolidated statement of shareholders' equity for the nine
months ended September 30, 1995; and, (iv) consolidated statements of cash
flows for the nine months ended September 30, 1995 and 1994.  Also attached
are the accompanying notes to the Company's consolidated financial
statements that have changed significantly during the nine months ended
September 30, 1995.  These statements, which should be read in conjunction
with the financial statements in the Company's annual report on Form 10-K
for the year ended December 31, 1994, include all adjustments which are, in
the opinion of management, necessary for a fair presentation of the results
for the interim periods.  The adjustments made were of a normal recurring
nature.

Air Group is a holding company incorporated in Delaware in 1985.  Its
principal subsidiaries are Alaska Airlines, Inc. (Alaska) and Horizon Air
Industries, Inc. (Horizon).

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION

Results of Operations
Third Quarter 1995 Compared with Third Quarter 1994  The consolidated net
income for the third quarter of 1995 was $27.4 million, or $2.01 per share
(primary) and $1.30 per share (fully diluted), compared with net income of
$24.3 million, or $1.81 per share (primary) and $1.36 per share (fully
diluted), in 1994.  Operating income for the third quarter of 1995 was
$62.6 million, compared with $52.3 million in 1994.  A discussion of
operating revenues and expenses for the two airlines follows.

Alaska Airlines  Operating revenues increased 9.4% to $342.8 million.
Passenger revenues, which accounted for 88% of total operating revenues,
increased 8.7% on a 10.5% rise in passenger traffic.  Capacity increased
12.7%, primarily due to increases in the Pacific Northwest to California
markets.  The load factor dropped from 67.3% in 1994 to 66.0% in 1995.
Passenger yields, at 12.00 cents, decreased 1.7% in 1995 compared to the
third quarter of 1994.  However, yields were approximately equal to those
of the second quarter of 1995.  In September 1995, Southwest Airlines
reduced walk-up fares by as much as 50% on 14 routes between California and
the Pacific Northwest.  In response, Shuttle by United reduced companion
fares (for travel through November 22) between Northern California and the
Pacific Northwest.  Alaska has matched these fare reductions, which are
expected to have a negative impact on fourth quarter 1995 revenues and
earnings.

Freight and mail revenues increased 5.4% primarily due to higher freight
volumes, resulting in part from the withdrawal of MarkAir from all Alaska
markets.  Other-net revenues rose 32.7% primarily due to increased revenues
from travel partners in Alaska's frequent flyer program.

The table below shows the major operating expense elements on a cost per
available seat mile (ASM) basis for Alaska for the third quarters of 1995
and 1994.

Operating Expenses Per ASM (In Cents)
%
1995      1994         Change    Change
Wages and benefits                2.41      2.57         (.16)      (6)
Aircraft fuel                     1.08      1.08
Aircraft maintenance               .31       .31
Aircraft rent                      .91      1.03         (.12)     (12)
Commissions                        .56       .64         (.08)     (13)
Depreciation & amortization        .38       .36          .02        6
Other                             1.84      1.93         (.09)      (5)
Total                             7.49      7.92         (.43)      (5)

Lower unit costs were due to continuing cost reduction efforts and better
utilization of aircraft.  Average daily aircraft utilization increased 4%
from 11.0 block hours to 11.4 block hours.  Wages and benefits per ASM
decreased 6% primarily due to improved productivity.  The number of
equivalent employees increased 6% while capacity increased 13% and traffic
increased 10%.

In October 1995, Alaska (as well as Horizon and other domestic airlines)
began paying an additional 4.3 cents Federal excise tax on domestic fuel
consumption.  The annual impact of this tax on Alaska is approximately $10
million or .07 cents per ASM.  There is pending legislation in Congress to
extend the exemption from this tax for 17 to 24 months.

Aircraft rent per ASM decreased 12% due to an increase in aircraft
utilization, and a restructuring (in the fourth quarter of 1994) of B737-
400 aircraft leases that resulted in lower rents.

Commission expense per ASM decreased 13% because passenger revenues, upon
which commissions are paid, did not keep pace with ASM growth.  In
addition, a greater percentage of tickets were sold without commissions
through tour operators.

Depreciation and amortization expense per ASM increased 6% in spite of a
13% increase in ASMs, primarily due to: (a) the reduction in estimated
salvage value from 20% to 5% (effective January 1, 1995) for all MD-80
aircraft; and (b) depreciation on three B737-400 aircraft that were on
operating leases in 1994.  Other expense per ASM decreased 5% due to lower
unit costs for food, landing fees, building rentals and outside services
expenses.

Horizon Air  Operating revenues increased 5.2% to $77.8 million.  Passenger
revenues, which accounted for 95% of total operating revenues, increased
4.8% on a 9.2% rise in passenger traffic.  Capacity increased 18.0% due to
the use of larger capacity Fokker F-28 jets and Dornier 328 turboprop
aircraft.  The load factor dropped from 66.7% in 1994 to 61.7% in 1995.
Passenger yields declined 4.0% to 31.0 cents in 1995, reflecting increased
competition and longer passenger trips.

Freight, mail and other revenues increased 11.5% due to increased freight
and mail volumes as well as increased revenues from providing services to
other airlines.

The table below shows the major operating expense elements on cost per ASM
basis for Horizon for the third quarters of 1995 and 1994.

Horizon Air                       Operating Expenses Per ASM (In Cents)
%
1995      1994         Change    Change
Wages and benefits                5.69      6.78      (1.09)       (16)
Aircraft fuel                     1.88      1.80        .08          4
Aircraft maintenance              2.30      2.15        .15          7
Aircraft rent                     2.27      2.30       (.03)        (1)
Commissions                       1.32      1.60       (.28)       (18)
Depreciation & amortization        .59       .64       (.05)        (8)
Other                             4.39      4.90       (.51)       (10)
Horizon Air Total                18.44     20.17      (1.73)        (9)

Horizon's cost per ASM declined 9% to 18.44 cents due to: (a) greater use
of higher capacity aircraft; (b) no profit sharing accrual in 1995; and (c)
cost reduction efforts.

Other Income (Expense)  Non-operating expense increased $3.0 million to
$12.4 million expense primarily due to: (a) $1.3 million more interest
expense resulting from higher interest rates on variable debt and higher
average debt balances; and (b) $2.2 million write-off of capitalized debt
issuance costs for the 7-1/4% zero coupon notes that were redeemed in
August 1995.

Nine Months 1995 Compared with Nine Months 1994  The consolidated net
income for the nine months ended September 30, 1995 was $18.0 million, or
$1.34 per share (primary) and $1.22 per share (fully diluted), compared
with net income of $27.6 million, or $2.07 per share (primary) and $1.76
per share (fully diluted), in 1994.  Operating income for the first nine
months of 1995 was $68.8 million compared to operating income of $73.8
million in 1994.  A discussion of operating revenues and expenses for the
two airlines follows.

Alaska Airlines  Operating revenues increased 7.3% to $868.4 million,
primarily due to a 14.6% rise in passenger traffic.  Capacity increased
18.6%, primarily due to increases in the Pacific Northwest to California
markets.  The load factor dropped from 63.6% in 1994 to 61.5% in 1995.
Passenger yields declined 7.0% to 11.72 cents in 1995, reflecting increased
competition on the West Coast.

Operating expenses increased 7.5% to $803.3 million on a capacity increase
of 18.6%.  Unit costs decreased 9.4%, generally for the same reasons as
noted above in the third quarter comparison.

Horizon Air  Operating revenues increased 10.7% to $210.9 million,
primarily due to an 18.8% rise in passenger traffic.  Capacity increased
26.6% due to the addition of larger capacity Fokker F-28 jets and Dornier
328 turboprop aircraft.  The load factor dropped from 62.9% in 1994 to
59.0% in 1995.  Passenger yields declined 7.2% to 31.7 cents in 1995,
reflecting increased competition and longer passenger trips.

Operating expenses increased 16.2% to $206.6 million on a capacity increase
of 26.6%.  Unit costs decreased 8.2%, generally for the same reasons as
noted above in the third quarter comparison.

Other Income (Expense)  Non-operating expense increased $11.2 million to
$35.5 million expense primarily due to: (a) $6.0 million more interest
expense resulting from higher interest rates on variable debt and higher
average debt balances; (b) $2.2 million write-off of capitalized debt
issuance costs for the 7-1/4% zero coupon notes that were repurchased in
August 1995; (c) $1.8 million of vendor credits included in 1994; and (d)
$1.2 million more gains on debt retirements included in 1994.

Income Tax Expense  Accounting standards normally require companies to
provide for income taxes each quarter based on their estimate of the
effective tax rate for the full year.  The volatility of air fares and the
seasonality of the Company's business make it very difficult to estimate
full-year pretax results.  In addition, a relatively small change in pretax
results can cause a significant change in the effective tax rate due to the
magnitude of nondeductible expenses, such as goodwill amortization and
employee per diem costs.  Since a reliable estimate cannot be made, the
Company has followed an alternative method allowed by accounting standards
and used a 45.8% year-to-date tax rate.  This rate was calculated using
year-to-date pretax income and year-to-date permanent differences.  This
approach may result in quarterly effective tax rates which vary
significantly.

Liquidity and Capital Resources
The table below presents the major indicators of financial condition and
liquidity.

September 30, 1995     December 31, 1994       Change
(In millions, except debt-to-equity and per share amounts)

Cash and marketable securities $143.6              $ 104.9         $38.7
Working capital (deficit)       (89.2)              (147.1)         57.9
Long-term debt                  560.6                589.9         (29.3)
Shareholders' equity            212.8                191.3          21.5

Book value per common share   $15.69               $ 14.27       $ 1.42

Debt-to-equity               72%:28%               76%:24%           NA

The Company's cash and marketable securities portfolio increased by $39
million during the first nine months of 1995.  Operating activities
provided $134 million of cash during this period.  An additional $129
million of cash was provided by the issuance of new long-term debt.  Cash
was used for airframe and engine overhauls and other capital expenditures
($47 million), the repayment of debt ($169 million), and the net repayment
of short-term borrowings ($25 million).

In June 1995, the Company issued $132.3 million of 6-1/2% convertible
senior debentures due 2005.  Each debenture is convertible into 46.512
shares of common stock, reflecting a conversion price of $21.50 per share.
In August 1995, the Company redeemed all of it's 7-1/4% zero coupon,
convertible subordinated notes for $127.7 million.

In August 1995, Standard & Poors lowered its corporate credit rating on Air
Group and Alaska to single B plus from double B minus, citing increased
competition in Alaska's West Coast markets.

During the second quarter of 1995, Alaska took delivery of two new MD-83
aircraft under 16-year operating leases.  During the third quarter of 1995,
Alaska agreed to take delivery of two new B737-400 aircraft (one in
November 1996 and one in March 1997), under 10-year operating leases.  In
addition, Alaska extended operating leases on four of its MD-80 aircraft
for an average of two years.

PART II.  OTHER INFORMATION
ITEM 6.  Exhibits and Reports on Form 8-K
(a)Exhibit 11 - Statement regarding computation of per-share earnings.
Exhibit 27 - Financial data schedule.
(b)No reports on Form 8-K were filed during the third quarter of 1995.

Signatures
Pursuant to the requirements of the Securities 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:  October 31, 1995

/s/ John F. Kelly
John F. Kelly
Chairman, President and Chief Executive Officer

/s/ Harry G. Lehr
Harry G. Lehr
Senior Vice President/Finance
(Principal Financial Officer)

CONSOLIDATED BALANCE SHEET                                                   
Alaska Air Group, Inc.                                                      

ASSETS                                                                        
Sept. 30,        Dec. 31,  
(In Thousands)                                              1995            1994  

Current Assets                                                                    
Cash and cash equivalents                                $58,147         $11,605  
Marketable securities                                     85,443          93,337  
Receivables - net                                        105,516          70,055  
Inventories and supplies                                  44,267          40,250  
Prepaid expenses and other assets                         60,134          57,396  

Total Current Assets                                     353,507         272,643  
Property and Equipment                                                            
Flight equipment                                         799,493         776,551  
Other property and equipment                             216,026         208,502  
Deposits for future flight equipment                      42,117          52,885  
1,057,636       1,037,938  
Less accum. depreciation and amort.                      300,140         260,001  
757,496         777,937  
Capital leases                                                                    
Flight and other equipment                               103,076         103,076  
Less accumulated amortization                             25,014          21,676  
78,062          81,400  

Total Property and Equipment - Net                       835,558         859,337  

Intangible Assets - Subsidiaries                          64,141          65,671  

Other Assets                                              99,167         118,120  

Total Assets                                          $1,352,373      $1,315,771  

See accompanying notes to consolidated financial statements.

CONSOLIDATED BALANCE SHEET                                                        
Alaska Air Group, Inc.                                                            

LIABILITIES AND SHAREHOLDERS' EQUITY                                              
Sept. 30,        Dec. 31,  
(In Thousands)                                              1995            1994  

Current Liabilities                                                               
Accounts payable                                         $64,352         $48,592  
Accrued aircraft rent                                     44,997          43,762  
Other accrued liabilities                                 79,931          59,591  
Accrued wages and related                                 43,346          47,364  
Short-term borrowings                                          -          25,000  
Air traffic liability                                    140,011         123,433  
Current portion of long-term debt and                                             
capital lease obligations                               70,079          72,005  

Total Current Liabilities                                442,716         419,747  
Long-Term Debt and Capital Lease                                                  
Obligations                                             560,634         589,904  
Other Liabilities and Credits                                                     
Deferred income taxes                                     45,738          28,585  
Deferred income                                           19,579          23,018  
Other liabilities                                         70,928          63,239  
136,245         114,842  
Shareholders' Equity                                                              
Common stock, $1 par value                                                        
Authorized:       30,000,000 shares                                             
Issued: 1995 -  16,714,599 shares                                               
1994 -  16,553,679 shares                       16,715          16,554  
Capital in excess of par value                         155,189         152,756  
Treasury stock, at cost:                                                        
1995-3,153,608;1994-3,153,589 shares                   (71,808)        (71,807) 
Deferred compensation                                     (3,823)         (4,697) 
Retained earnings                                        116,505          98,472  
212,778         191,278  

Total Liabilities and Shareholders' Equity            $1,352,373      $1,315,771  

See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENT OF INCOME                                                  
Alaska Air Group, Inc.                                                            

Quarter Ended September 30                                                        
(In Thousands except Per share Amounts)                     1995            1994  

Operating Revenues                                                                
Passenger                                               $377,292        $349,707  
Freight and mail                                          26,277          24,833  
Other - net                                               16,060          12,261  
Total Operating Revenues                                 419,629         386,801  
Operating Expenses                                                                
Wages and benefits                                       114,231         109,397  
Aircraft fuel                                             48,482          42,598  
Aircraft maintenance                                      20,807          17,727  
Aircraft rent                                             43,789          42,623  
Commissions                                               26,502          27,148  
Depreciation and amortization                             16,945          14,475  
Other                                                     86,251          80,552  
Total Operating Expenses                                 357,007         334,520  
Operating Income                                          62,622          52,281  
Other Income (Expense)                                                            
Interest income                                            3,390           2,426  
Interest expense                                         (13,315)        (11,985) 
Interest capitalized                                           -              83  
Loss on sale of assets                                      (702)           (320) 
Other - net                                               (1,737)            427  
(12,364)         (9,369) 
Income before income tax                                  50,258          42,912  
Income tax expense                                        22,906          18,649  
Net Income                                               $27,352         $24,263  

Primary Earnings Per Share                                 $2.01           $1.81  
Fully Diluted Earnings Per Share                           $1.30           $1.36  
Shares used for computation:                                                      
Primary                                                  13,575          13,386  
Fully diluted                                            23,034          19,486  

See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENT OF INCOME                                                  
Alaska Air Group, Inc.                                                            

Nine Months Ended September 30                                                    
(In Thousands except Per share Amounts)                     1995            1994  

Operating Revenues                                                                
Passenger                                               $957,469        $892,173  
Freight and mail                                          71,761          67,428  
Other - net                                               47,164          38,057  
Total Operating Revenues                               1,076,394         997,658 
Operating Expenses                                                                
Wages and benefits                                       322,519         302,526  
Aircraft fuel                                            131,560         109,940  
Aircraft maintenance                                      61,126          52,397  
Aircraft rent                                            128,470         123,135  
Commissions                                               71,775          70,799  
Depreciation and amortization                             50,875          41,678  
Other                                                    241,279         223,339  
Total Operating Expenses                               1,007,604         923,814  
Operating Income                                          68,790          73,844  
Other Income (Expense)                                                            
Interest income                                            6,701           5,561  
Interest expense                                         (39,713)        (33,672) 
Interest capitalized                                           -             281  
Loss on sale of assets                                    (1,408)           (822) 
Other - net                                               (1,126)          4,310  
(35,546)        (24,342) 
Income before income tax                                  33,244          49,502  
Income tax expense                                        15,211          21,871  
Net Income                                               $18,033         $27,631  

Primary Earnings Per Share                                 $1.34           $2.07  
Fully Diluted Earnings Per Share                           $1.22           $1.76  
Shares used for computation:                                                      
Primary                                                  13,450          13,371  
Fully diluted                                            20,431          19,725  

See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENT OF SHAREHOLDERS               
Alaska Air Group, Inc.                 

Common Stock             
Capital in     Treasury     Deferred    
$1 Par    Excess of        Stock      Compen-     Retained 
(In Thousands)                             Value    Par Value      at Cost       sation     Earnings          Total 

Balances at December 31, 1994            $16,554     $152,756     $(71,807)     $(4,697)     $98,472      $191,278  
Net income for the nine months                                                                                      
ended September 30, 1995                                                                    18,033        18,033  
Stock issued under stock plans               161        2,433                                                2,594  
Treasury stock purchase                                                 (1)                                     (1) 
Employee Stock Ownership Plan                                                                                       
shares allocated                                                                  874                        874  

Balances at September 30, 1995           $16,715     $155,189     $(71,808)     $(3,823)    $116,505      $212,778  

See accompanying notes to consolidated statements.

CONSOLIDATED STATEMENT OF CASH FLOWS                                                
Alaska Air Group, Inc.                                                              

Nine Months Ended September 30 (In Thousands)                    1995         1994  

Cash and cash equivalents at beginning of period              $11,605      $27,179  
Cash flows from operating activities:                                               
Net income                                                     18,033       27,631  
Adjustments to reconcile net income to cash:                                        
Depreciation and amortization                                  50,875       41,678  
Amortization of airframe and engine overhauls                  18,744       15,357  
Loss (gain) on disposition of assets and debt retirement        3,238         (723) 
Deferred income taxes                                          17,153       14,928  
Increase in accounts receivable                               (35,461)      (4,607) 
Decrease (increase) in other current assets                    (6,755)       2,786  
Increase in air traffic liability                              16,578       17,219  
Increase in other current liabilities                          33,317       39,822  
Interest on zero coupon notes                                   5,359        7,610  
Leased aircraft return payments and other-net                  13,094      (15,589) 

Net cash provided by operating activities                     134,175      146,112  
Cash flows from investing activities:                                               
Proceeds from disposition of assets                             2,209        4,691  
Purchases of marketable securities                            (62,340)     (77,192) 
Sales and maturities of marketable securities                  70,234       29,760  
Restricted deposits                                             3,513       (5,509) 
Flight equipment deposits returned                              8,883        3,578  
Additions to flight equipment deposits                              -         (961) 
Additions to property and equipment                           (46,997)    (141,566) 
Payments received on loans to ESOPs                             1,111        1,313  

Net cash used in investing activities                         (23,387)    (185,886) 
Cash flows from financing activities:                                               
Proceeds from short-term borrowings                             4,000            -  
Repayment of short-term borrowings                            (29,000)     (20,000) 
Proceeds from issuance of long-term debt                      128,795      104,000  
Long-term debt and capital lease payments                    (168,805)     (42,458) 
Proceeds from issuance of common stock                          2,594          319  
Gain (loss) on debt retirement                                 (1,830)       1,545  

Net cash provided by (used in) financing activities           (64,246)      43,406  
Net increase in cash and cash equivalents                      46,542        3,632  
Cash and cash equivalents at end of period                    $58,147      $30,811  
Supplemental disclosure of cash paid (received)
during the period for:
Interest (net of amount capitalized)                        $34,687      $28,813  
Income taxes (refunds)                                      $(1,943)     $(5,415) 

Noncash investing and financing activities                       None         None 

See accompanying notes to consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THAT HAVE CHANGED
SIGNIFICANTLY DURING THE NINE MONTHS ENDED SEPTEMBER 30, 1995
Alaska Air Group, Inc.

Note 1. Summary  of  Significant  Accounting Policies  (See  Note  1  to
Consolidated Financial Statements at December 31, 1994)

Property, Equipment and Depreciation
Effective January 1, 1995, the estimated salvage value of MD-80 flight
equipment was changed to 5% from 20%.  The new estimate was adopted to
recognize the lower expected salvage values for this aircraft type.  The
effect of the change on the three months and nine months ending June 30,
1995 was to decrease net income $757,000 ($.06 per primary share and
$.03 per fully diluted share) and $2.3 million ($.17 per primary share
and $.11 per fully diluted share), respectively.

Note 2. Long-Term  Debt  and Capital Lease Obligations (See  Note  4  to
Consolidated Financial Statements at December 31, 1994)

In June 1995, the Company issued $132.3 million of 6-1/2% convertible
senior debentures due 2005.  Each debenture is convertible to 46.512
shares of common stock, reflecting a conversion price of $21.50 per
share.

In August 1995, the Company redeemed all of it's 7-1/4% zero coupon,
convertible subordinated notes for $127.7 million.

Note 3. Commitments (See Note 5 to Consolidated Financial Statements  at
December 31, 1994)

During the second quarter of 1995, Alaska took delivery of two new MD-83
aircraft under 16-year operating leases.  During the third quarter of
1995, Alaska agreed to take delivery of two new B737-400 aircraft (one
in November 1996 and one in March 1997), under 10-year operating leases.
In addition, Alaska extended operating leases on four of its MD-80
aircraft for an average of two years.  The total increase in lease
commitments for all of these transactions is approximately $205 million.

Note 4. Financial  Instruments  (See Note 11 to  Consolidated  Financial
Statements at December 31, 1994)

At September 30, 1995, the Company had a fuel hedge agreement in place
with a ceiling price of 70 cents covering approximately 50% of the
expected fuel usage through July 1996, and a floor price of 42 cents
covering approximately 50% of the expected fuel usage through July 1996.
At September 30, 1995, the fuel index was at 51 cents.

Alaska Air Group, Inc.                                                             EXHIBIT 11
Computation of Earnings Per Common Share
(In thousands, except per share)

Three Months Ended      Nine Months Ended
September 30,          September 30,
------------------     -------------------
1995        1994        1995        1994
------      ------      ------      ------

Primary -
Net income                                       $27,352     $24,263     $18,033     $27,631
======      ======      ======      ======

Average number of shares outstanding              13,509      13,370      13,440      13,359
Assumed exercise of stock options reduced
by the number of shares purchased with
the proceeds from exercise of such options           66          16          10          12
------      ------      ------      ------
Average shares as adjusted                        13,575      13,386      13,450      13,371
======      ======      ======      ======

Earnings per common share                          $2.01       $1.81       $1.34       $2.07
======      ======      ======      ======

Fully Diluted -
Net income                                       $27,352     $24,263     $18,033     $27,631
After tax interest on convertible securities       2,580       2,318       6,868       7,037
------      ------      ------      ------
Income applicable to common shares               $29,932     $26,581     $24,901     $34,668
======      ======      ======      ======

Average number of shares outstanding              13,509      13,370      13,440      13,359
Assumed exercise of stock options                     66          19          10          15
Assumed conversion of 6.5% debentures              6,151           0       2,141           0
Assumed conversion of 7.75% debentures               446         508         487         513
Assumed conversion of 6.875% debentures            1,608       1,608       1,608       1,702
Assumed conversion of 7.25% zero coupon notes      1,254       3,981       2,745       4,136
Assumed conversion of preferred shares                 0           0           0           0
------      ------      ------      ------
Average shares as adjusted                        23,034      19,486      20,431      19,725
======      ======      ======      ======

Earnings per Common Share                          $1.30       $1.36       $1.22       $1.76
======      ======      ======      ======

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALASKA AIR
GROUP INC THIRD QUARTER 1995 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000

<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               SEP-30-1995
<CASH>                                           58147
<SECURITIES>                                     85443
<RECEIVABLES>                                   105516
<ALLOWANCES>                                         0
<INVENTORY>                                      44267
<CURRENT-ASSETS>                                353507
<PP                                         1160712
<DEPRECIATION>                                  325154
<TOTAL-ASSETS>                                 1352373
<CURRENT-LIABILITIES>                           442716
<BONDS>                                         560634
<COMMON>                                         16715
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                      196063
<TOTAL-LIABILITY-AND-EQUITY>                   1352373
<SALES>                                        1076394
<TOTAL-REVENUES>                               1076394
<CGS>                                          1007604
<TOTAL-COSTS>                                  1007604
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               39713
<INCOME-PRETAX>                                  33244
<INCOME-TAX>                                     15211
<INCOME-CONTINUING>                              18033
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     18033
<EPS-PRIMARY>                                     1.34
<EPS-DILUTED>                                     1.22