EX-12.2 4 twelvetwo.htm UNITED twelvetwo.htm

Exhibit 12.2


United Air Lines, Inc. and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements


   
Successor
    
Predecessor
  
   
 Nine Months
   
 Period from
   
 Period from
  
   
 Ended
      February 1 to    
 January 1 to
  
(In millions)
  
 September 30,
    
September 30,
    
  January 31,
  
   
2007
    
2006
    
2006
  
Earnings:
                  
Earnings before income taxes & adjustments for minority interest and equity earnings in affiliates
   $
814
     $
155
     $
22,620
  
                         
Add (deduct):
                        
  Fixed charges, from below
    
683
      
731
      
64
  
  Distributed earnings of affiliates
    
2
      
3
      
-
  
  Amortization of capitalized interest
    
-
      
-
      
1
  
  Interest capitalized
     (14 )     (10 )    
-
  
  Minority interest
     (2 )    
-
      
-
  
     Earnings as adjusted
   $
1,483
     $
879
     $
22,685
  
                         
                         
Fixed charges:
                        
  Interest expensed and capitalized and amortization
                        
     of debt discounts and issuance costs (a)
   $
506
     $
507
     $
42
  
  Portion of rental expense representative
                        
     of the interest factor
    
177
      
224
      
22
  
     Fixed charges, as above
    
683
      
731
      
64
  
                         
  Preferred stock dividend requirements (pre-tax) (b)
    
13
      
11
      
-
  
     Fixed charges including preferred stock dividends
   $
696
     $
742
     $
64
  
                         
Ratio of earnings to fixed charges
    
2.17
      
1.20
      
354.45
  
Ratio of earnings to fixed charges and preferred dividend requirements
    
2.13
      
1.18
      
354.45
  

(a)  
Amortization of debt discounts includes amortization of fresh-start valuation discounts.
(b)  
Successor Company 2007 dividends were adjusted using an estimated 2007 effective tax rate of approximately 43%. Preferred dividend requirements were nonexistent for the Predecessor Company as push down accounting was not applied prior to the adoption of fresh-start reporting.