EX-12.1 6 dex121.htm UAL CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES UAL Corporation Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

UAL Corporation 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  
                       Period from
February 1 to
December 31,		          Period from
January 1 to
January 31,		       

(In millions, except ratios)

    2009     2008     2007     2006          2006    2005  

Earnings (losses):

                 

Earnings (loss) before income taxes & adjustments for minority interest and equity earnings (losses) in affiliates

    $ (671 )    $ (5,424 )    $ 654     $ 29        $ 22,846    $ (21,178 ) 
 

Add (deduct):

                 

Fixed charges, from below

      911       868       938       1,069           63      775  

Distributed earnings of affiliates

      2       2       3       4          —        3  

Amortization of capitalized interest

      3       1       1       —             1      14  

Minority interest

      (1 )      (2 )      (2 )      (4 )         —        —     

Interest capitalized

      (10 )      (20 )      (19 )      (15 )         —        3  
                                                  

Earnings (loss) as adjusted

    $ 234      $ (4,575 )    $ 1,575     $ 1,083        $ 22,910    $ (20,383 ) 
                                                  

Fixed charges:

                 

Interest expensed and capitalized and amortization of debt discounts and issuance costs (a)

    $ 577     $ 571     $ 704     $ 746        $ 42    $ 484  

Portion of rental expense representative of the interest factor

      334       297       234       323          21      291  
                                                  

Fixed charges, as above

      911       868       938       1,069          63      775  
 

Preferred stock dividend requirements (pre-tax) (b)

      —          3       18       21          1      10  
                                                  

Fixed charges including preferred stock dividends

    $ 911     $ 871     $ 956     $ 1,090        $ 64    $ 785  
                                                  

Ratio of earnings to fixed charges

      (c )      (d )      1.68       1.01          363.65      (d ) 
                                                  

Ratio of earnings to fixed charges and preferred dividend requirements

      N/A        (d )      1.65       (e )         357.97      (d ) 
                                                  

 

(a) Amortization of debt discounts includes amortization of fresh-start valuation discounts.
(b) Successor Company dividends were adjusted using the effective tax rate for each applicable year, except 2006. In 2006, preferred dividends were grossed-up based on the Company’s effective tax rate only to the extent of the Company’s income tax provision for the period.
(c) Earnings were inadequate to cover fixed charges by $677 million in 2009.
(d) Earnings were inadequate to cover both fixed charges and fixed charges and preferred dividend requirements by $5.4 billion in 2008 and $21.2 billion in 2005.
(e) Earnings were inadequate to cover combined fixed charges and preferred dividend requirements by $7 million in the 2006 Successor period.
N/A Not applicable.