Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
SCHAEFER JOHN F JR
  2. Issuer Name and Ticker or Trading Symbol
ALASKA AIR GROUP INC [ALK]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP/FINANCE AND TREASURER
(Last)
(First)
(Middle)
C/O ALASKA AIR GROUP INC, 19300 INTERNATIONAL BLVD
3. Date of Earliest Transaction (Month/Day/Year)
01/28/2011
(Street)

SEATTLE, WA 98188
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
COMMON STOCK (1)               865 I ESOP TRUST
COMMON STOCK 01/28/2011   J(2)   865 D $ 59.7257 0 I ESOP TRUST
COMMON STOCK 02/01/2011   M   1,545 A $ 42.85 3,191 D  
COMMON STOCK 02/01/2011   M   525 A $ 37.96 3,716 D  
COMMON STOCK 02/01/2011   M   1,690 A $ 27.56 5,406 D  
COMMON STOCK 02/01/2011   S   3,760 D $ 61.4753 1,646 D  
COMMON STOCK (3)               10,980 D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
EMPLOYEE STOCK OPTION (RT TO BUY) $ 42.85 02/01/2011   M     1,545 01/31/2010 01/31/2017 COMMON 1,545 $ 0 515 D  
EMPLOYEE STOCK OPTION (RT TO BUY) $ 37.96 02/01/2011   M     525 09/13/2010 09/13/2016 COMMON 525 $ 0 0 D  
EMPLOYEE STOCK OPTION (RT TO BUY) $ 27.56 02/01/2011   M     1,690 01/29/2011 01/29/2019 COMMON 1,690 $ 0 3,380 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
SCHAEFER JOHN F JR
C/O ALASKA AIR GROUP INC
19300 INTERNATIONAL BLVD
SEATTLE, WA 98188
      VP/FINANCE AND TREASURER  

Signatures

 SHANNON K. ALBERTS, ATTORNEY IN FACT FOR JOHN F. SCHAEFER, JR.   02/01/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) SHARES HELD IN AN ALASKA AIR GROUP, INC. EMPLOYEE STOCK OWNERSHIP 401(K) PLAN TRUST AS OF JANUJARY 27, 2011.
(2) DISPOSITION OF ALK COMMON STOCK HELD IN 401(K) ESOP TRUST AND REALLOCATION OF FUNDS WITHIN THE ACCOUNT.
(3) STOCK UNITS AWARDED UNDER THE 2004 LONG-TERM INCENTIVE EQUITY AND 2008 PERFORMANCE INCENTIVE PLANS; SUBJECT TO FORFEITURE.

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