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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