Sustainable
Aviation Fuel
4.27.21

  ALASKA AIRLINES FLIGHT PLAN TO NET ZERO BY 2040
OPERATIONAL EFFICIENCY               NOVEL PROPULSION
We have long prioritized |   i   efficiency for       Novel;  |  IT       i lly means increasing the use
safety, reliability, and sustainability, and will           of electric or |    i  power without fossil fuels.
inue
to     d
our best practices   to  reduce   fuel     I     ingly electrified options can be available for
burn and carbon emissions, like single-engine          regional aircraft by 2040, and we're evaluating
taxiing where possible, using |     Iii   | air at       |      I] ‘and in-kind   Ig  tohelp enable
airports, and |     i ¢ to enhance efficiency in the     these emerging   | |   Foiitg   Iolgi
national air space.                             Alaska’s |                                                                                      CARBON OFFSETTING TECHNOLOGY
gi   | airline, Horizon Air, is well                                   Ya
positioned to leverage this exciting opportunity in the
FLEET RENEWAL                        decades ahead.
Alaska Airlines recently finalized its order for up to
120 Boeing 737-9 MAX aircraft, including 68 firm       CARBON OFFSETTINGTECHNOLOGY
orders and 52 options. These new airplanes are         Aviation is one of the hardest sectors to decarbonize,
more fuel efficient than the aircraft they replace, and     so credible carbon offsets are likely needed to close
we'll work with Boeing on ways to further improve       the gap to our net zero target by 2040, and until SAF
efficiency over time.                           andnovel|  |  |   become viable and available at
scale. We'll work to identify credible carbon offsets
SUSTAINABLE AVIATION FUEL (SAF)*        that add net offset value, are verified in carbon
;      i
SAF is a safe, certified fuel that can be blended with            g, do no harm, are durable, and don’t
traditional fuel, and every gallon of SAF has up to       displace emissions to another project.
80% less carbon emissions on a lifecycle basis than                                                                                                                  NOVEL PROPULSION
traditional jet fuel. Last year Alaska launched a
program with Microsoft to use SAF to offset the
carbon impact of Microsoft employee travel from
Seattle to California. We're also using SAF from
producer NesteinSanF   |     | working with
SkyNRGto advance SAF|   |  |  onthe West
Coast. Today, there's not enough SAF and it’s not
available at a viable cost to scale,   ¢
supportand  | |       rith producers are critical
to expand its availability and use.                                                                                                                 SUSTAINABLE AVIATION FUEL (SAF)*

* Thisisthe     iol    ro      "1 ).itcould
I        |        Pi    I  1, basedonhow
‘muchwecanadvance the supplyand      1 | viabilityofthe
SAFmarketinthenext 10-15years.

FLEET RENEWAL

OPERATIONAL EFFICIENCY

     Building Employee Culture around Carbon Efficiency
•   For 2021, Alaska added a carbon efficiency metric (CO2e/ASM) into the allcompany
bonus plan (PBP: Performance-Based Pay)
•   All employees (22,000+) have a role in improving our carbon performance, and
10% of the annual bonus comes from achieving our target
•   Our foundational belief is that our success in carbon will come from embedding
carbon efficiency into our culture, as we have done with safety

© 2016 Alaska Airlines - Confidential                                                                          3

  ALASKA’S SAF HISTORY
2009: First domestic carrier to join the Sustainable Aviation
Fuel Users Group
2011: First airline to fly multiple (75) commercial passenger
flights with SAJF from used cooking oil
2015: First “alcohol-to-jet” test flight in partnership with Gevo
2016: First commercial flight globally using forest residuals as
a feedstock: WSU & NARA partnership
2018: Partner MOUs with SEA, SFO, and Neste Fuels to scale
mainstream adoption
© 2016 Alaska Airlines - Confidential 4

  ALASKA’S SAF HISTORY
2020: First ongoing use of SAF (for Alaska, and at SFO airport)
in August from Neste -- other airline offtakers include
American and JetBlue
2020: October launch of Microsoft “Renewable Routes”
business travel, using SAF to zero-out the climate impact of
Microsoft employee travel on their most frequent Alaska
routes
2021: Partner with WSU / ASCENT on a two-year funding of
research to accelerate SAF in the PNW
2021: April announcement of MOU with SkyNRG Americas to
jointly work on PNW SAF production
© 2016 Alaska Airlines - Confidential 5

      Microsoft SAF Partnership, Fall 2020:
•  Long-term, multi-year partnership to forge mutual working relationships to promote
environmental sustainability and the use of Sustainable Aviation Fuel (SAF) to reduce carbon
emissions associated with airline travel.
•  Directly ties to Microsoft’s leading climate pledge (carbon negative by 2030, remove all
historical emissions by 2050)

What it is:
•  Reduce MSFT’s travel footprint through “Renewable Routes” on Alaska Air routes from SEA
to California.
•  Send joint market signals to promote and develop the SAF market
•  Aspiration for local PNW SAF projects

     SkyNRG Americas MOU, April 2021:
•  Partnership to advance sustainable aviation fuel made from municipal solid waste in the
PNW
o Advance truly sustainable production of SAF and develop supply in the Pacific Northwest
o Engage partners for a commercially viable and scalable future for sustainable fuels
o Help drive necessary policy changes that will encourage development of the SAF industry across the
Pacific Northwest and the nation as a whole
•  SkyNRG Americas approach
o Initially focus on dedicated SAF production facilities to supply Western U.S. airports
o Use commercially available technologies that enable the use of municipal solid waste and other
waste-based inputs as feedstocks, as well as incorporating green hydrogen and renewable energy for
minimizing carbon intensity

                                                                              © 2016 Alaska Airlines - Confidential                                                                          8