Dear Stephem:

I want to thank you for your continued loyalty over the past several months, and give you an update on our operation. As one of our most frequent and valued travelers, you know that it was a difficult summer. I apologize for that, and sincerely appreciate your patience.

The hard work of our people has resulted in a steadily improving operation since mid-July. Hopefully, you've seen an improving trend on your flights. Our cancellations are dramatically reduced (down to 1% of flights) and on-time performance (arrivals within 15 minutes of schedule) has reached 80%, close to our goal of 82%. Rest assured that we are committed to achieving operational excellence, and we understand that earning your continued business depends on it.

On behalf of all of us at Alaska Airlines, within the next few days, you will be receiving a treat from Harry & David as a token of our appreciation for your business. We look forward to welcoming you back onboard another Alaska Airlines flight again soon!

Sincerely,


William S. Ayer
Chairman and CEO