While being questioned by police, Dye initially denied having the iPad or knowing one was missing.
The flight attendant then confessed that a passenger brought her the tablet, which cost around $500, saying it had been left on a seat.
She said she never used the iPad and planned to turn it over to airline officials, but placed it in a personal bag and soon forgot about it.
Police say they found some of her personal information on it, however, including a reminder for her husband's upcoming birthday.
Dye, who is charged with Theft II by receiving and Computer Crime, did not immediately respond to a phone message.
A spokeswoman for Alaska Airlines, which owns Horizon, says Dye was suspended pending the police investigation.
She was being held at the Clackamas County Jail with bail set at $12,500.
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