EX-12.2 6 d316621dex122.htm UNITED AIR LINES, INC. COMPUTATION OF RATIO OF EARNINGS United Air Lines, Inc. Computation of Ratio of Earnings

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

 

(In millions, except ratios)    Three Months Ended
March 31, 2012		   2011   2010   2009   2008   2007

Earnings (losses):

                         

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

      $ (421 )     $ 285       $ 389       $ (643 )     $ (5,375 )     $ 658  

Add (deduct):

                         

Fixed charges, from below

        212         892         992         950         911         956  

Amortization of capitalized interest

        2         7         5         3         2         1  

Distributed earnings of affiliates

        —           1         2         2         2         4  

Interest capitalized

        (3 )       (15 )       (11 )       (10 )       (20 )       (19 )

Equity earnings in affiliates

        (1 )       (3 )       (3 )       (4 )       (6 )       (5 )

Minority interest

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

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Earnings (loss) as adjusted

      $        (211 )     $      1,166       $      1,372       $         297       $     (4,488 )     $      1,593  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Fixed charges:

                         

Interest expensed and capitalized and amortization of premiums, debt discounts, issuance costs and capital expenditures (a)

      $ 137       $ 595       $ 695       $ 577       $ 571       $ 703  

Portion of rental expense representative of the interest factor

        75         297         297         373         340         253  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Fixed charges, as above

        212         892         992         950         911         956  

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

        —           —           —           —           3         18  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Fixed charges including preferred stock dividends

      $ 212       $ 892       $ 992       $ 950       $ 914       $ 974  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratio of earnings to fixed charges

        (c )       1.31         1.38         (d )       (e )       1.67  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratio of earnings to fixed charges and preferred stock dividends

        N/A         N/A         N/A         N/A         (e )       1.64  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) Amortization of debt discounts includes amortization of fresh-start valuation discounts.
(b) Dividends were adjusted using the effective tax rate for each applicable year.
(c) Earnings were inadequate to cover fixed charges by $423 million in the first quarter of 2012.
(d) Earnings were inadequate to cover fixed charges by $653 million in 2009.
(e) Earnings were inadequate to cover both fixed charges and fixed charges and preferred stock dividend requirements by $5.4 billion in 2008.

N/A Not applicable, as there were no preferred stock dividends in this period.