ITEM 8.01. Other Events

On November 23, 2020, Alaska Air Group, Inc. (the Company) announced a transaction with Air Lease Corporation (ALC) to sell 10 owned Airbus A320 aircraft and replace those aircraft with 13 new leased Boeing 737-9 MAX (MAX) aircraft. The 13 new MAX aircraft will be delivered beginning fourth quarter 2021 through 2022. The Company will lease all 10 Airbus A320 aircraft back from ALC in the interim period between sale of those aircraft and delivery of the first 10 MAX aircraft. As a result of the transaction, certain debt which was previously collateralized by the 10 Airbus A320s was prepaid. Prepayment of the debt and the associated fees totaling approximately $272 million, as well as sales proceeds received, are excluded from our cash burn projections in the fourth quarter.

The Company has issued a press release related to the transaction. The press release is attached as Exhibit 99.1.

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