Alaska Airlines continues to stand out as a bright spot in the struggling U.S. airline industry. The carrier had the highest profit margin of the nine largest U.S. airlines during the first nine months of 2009, notes airline analyst Michael Derchin of FTN Equity Capital. Alaska's pre-tax margin of 6% beat out AirTran Airways (5%), JetBlue Airways (3%), and Southwest Airlines (1%). United Airlines finished at the bottom of the pack, with a pre-tax margin of negative 8%.

"Alaska is marching to the beat of its own drummer, doing things its own way, often contrary to industry norms," notes Derchin. "It is buying back shares, instead of issuing equity. It is generating liquidity through operating and free cash flow, instead of through financing. Instead of growing through acquisitions, its network growth has been largely organic."

The only negative: rising fuel prices are expected to put pressure on Alaska's profits during the fourth quarter.