EX-12.1 2 d312486dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Continental Airlines Inc.

Computation of Ratio of Earnings to Fixed Charges

(In millions, except ratios)

 

     Successor             Predecessor  
     Year Ended
December 31,
2011		     Three Months
Ended
December 31,
2010		             Nine Months
Ended
September 30,
2010		     Year Ended
December 31,
2009		     Year Ended
December 31,
2008		     Year Ended
December 31,
2007		  

Earnings:

                 
 

Earnings (loss) before income taxes and minority interest

    $ 563      $ (99 )        $ 442      $ (439 )    $ (695 )    $ 556   
 

Less:

                 

Undistributed earnings of equity investees

      —          —              —          —          9        18   
 

Plus:

                 

Interest expense

      342        86            288        367        376        393   

Capitalized interest

      (17 )      (4 )          (17 )      (33 )      (33 )      (27 ) 

Amortization of capitalized interest

      —          —              27        36        35        36   
 

Portion of rent expense representative of interest expense (a) at 60%

      771        197            684        907        934        917   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  
   $ 1,659      $ 180          $ 1,424      $ 838      $ 608      $ 1,857   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

                 

Interest expense

    $ 342      $ 86          $ 288      $ 367      $ 376      $ 393   

Portion of rent expense representative of interest expense

      771        197            684        907        934        917   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

      1,113        283            972        1,274        1,310        1,310   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

Coverage adequacy (deficiency)

    $ 546      $ (103 )        $ 452      $ (436 )    $ (702 )    $ 547   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

Coverage ratio (b)

      1.49        NA            1.47        NA        NA        1.42   
  

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Interest calculated at 60% of rent payments
(b) For purposes of calculating this ratio, earnings consist of income before income taxes and cumulative effect of changes in accounting principles adjusted for undistributed income of companies in which Continental has a minority equity interest plus interest expense (net of capitalized interest), the portion of rental expense representative of interest expense and amortization of previously capitalized interest. Fixed charges consist of interest expenses, the portion of rental expense representative of interest expense, the amount amortized for debt discount, premium and issuance expense and interest previously capitalized. For the three months ended December 31, 2010 and the years ended December 31, 2009 and 2008, earnings were inadequate to cover fixed charges and the coverage deficiency was $103 million, $436 million and $702 million, respectively.