Alaska Air Group Narrows 1Q Loss

Alaska Airlines' mainline passenger traffic in the first quarter declined 7.7 percent on a 9.3 percent capacity decrease, compared to the first quarter of 2008. Horizon Air's passenger traffic in the first quarter declined 20.4 percent on a 16.5 percent capacity decrease, compared to the first quarter of 2008.

The parent company said the new $15 fee for a first checked bag — effective July 7 for tickets purchased beginning May 1 — includes a guarantee to compensate passengers if their luggage is not at baggage claim 25 minutes after their flight parks at the gate. If that happens, customers will receive 2,500 Alaska Airlines Mileage Plan miles or $25 off a future flight.

First class passengers, elite frequent fliers, unaccompanied minors, military personnel on active duty and passengers traveling to or from Mexico City and Guadalajara, Mexico, will not be charged for a first checked bag, Alaska Air Group said.

Earlier this year, Alaska Airlines asked the government to determine whether privately held Virgin America continues to meet the qualifications for being a U.S. air carrier. It cited media reports that called into question Virgin America's compliance with U.S. foreign ownership and control restrictions on domestic carriers.

Under U.S. law, foreign ownership in a U.S. air carrier is limited to 25 percent of the voting interest in the carrier.