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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

FORM 8-K

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

May 15, 2003
(Date of Report)

ALASKA AIR GROUP, INC.

Delaware		91-1292054
(State or other jurisdiction of incorporation or organization)		(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

In accordance with General Instruction B.2 of Form 8-K, the following information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. This Report will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

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, 2002. 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.

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		Forecast				Change
		Q2				Yr/Yr
Alaska Airlines
Capacity (ASMs in millions)			5,192				5.3	%
Fuel gallons (000,000)			85.8				4.3	%
Cost per ASM excluding fuel (cents)			8.4				0.0	%

Alaska Airlines’ April traffic increased 4.0% to 1.123 billion revenue passenger miles (RPMs) from 1.080 billion flown a year earlier. Capacity during April was 1.636 billion available seat miles (ASMs), 3.2% higher than the 1.586 billion in April 2002.

The passenger load factor (the percentage of available seats occupied by fare paying passengers) for the month was 68.6%, compared to 68.1% in April 2002. The airline carried 1,159,800 passengers compared to 1,150,000 in April 2002.

For April 2003, revenue per available seat mile (RASM) increased by 2.1% as compared to April 2002. This increase in RASM is due principally to an increase in load factor.

Horizon Air
Capacity (ASMs in millions)			633				4.3	%
Fuel gallons (000,000)			13.4				(2.2	)%
Cost per ASM excluding fuel (cents)			16.0				0.6	%

Horizon Air’s April traffic increased 8.0% to 120.0 million RPMs from 111.1 million flown a year earlier. Capacity for April was 204.2 million ASMs, 6.4% higher than the 191.9 million in April 2002.

The passenger load factor for the month was 58.7%, compared to 57.9% last April. The airline carried 361,500 passengers compared to 365,800 in April 2002.

For April 2003, RASM increased by 0.4% as compared to April 2002. This increase in RASM is due to slight increases in yield and load factor.

Capacity Estimates for 2003
Provided below are capacity (ASMs in millions) for the full year of 2003:

Alaska Airlines capacity			20,704				6.9	%
Horizon Air capacity			2,581				6.3	%

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Other Financial Information

Cash and Short-Term Investments

Cash and short-term investments amounted to approximately $648 million on April 30, 2003 as compared to $615 million at March 31, 2003. The increase of $33 million is principally due to cash generated from operations.

Fuel Cost per Gallon (including realized hedging gains)

		Cost per Gallon				% Change from Prior Year
Alaska:
April		88.5 cents					11.7	%
Horizon:
April		91.8 cents					11.3	%

Current fuel hedge positions for Alaska and Horizon are as follows:

		Approximate % of				Approximate Crude Oil
		Expected Fuel Requirements				Price per Barrel
April – December 2003			35	%		$	22

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Operating Fleet Plan

Provided below are estimated changes in the Alaska and Horizon fleets for 2003:

										Estimated
						On Hand				Change During
		Seats				YE 2002				2003
Alaska Airlines
B737-200C			111				9
B737-400			138				40
B737-700			120				16				6
B737-900			172				6				5
MD-80			140				31				(4	)
Total							102				7
Horizon Air
Dash 8-100/200			37				28
Dash 8-400			70				15
F-28			69				4				(4	)
CRJ 700			70				16				2
Total							63				(2	)

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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.

Date: May 15, 2003

/s/ Terri K. Maupin

/s/ Bradley D. Tilden

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