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 | |||||||||||
Six Months Ended June 30, | Period from February 1 to June 30, | Period from January 1 to January 31, | ||||||||||
(In millions) | 2007 | 2006 | 2006 | |||||||||
Earnings (losses): | ||||||||||||
Earnings (loss) before income taxes & adjustments for minority interest and equity earnings/(losses) in affiliates | $ | 243 | $ | (100 | ) | $ | 22,620 | |||||
Add (deduct): | ||||||||||||
Fixed charges, from below | 469 | 495 | 64 | |||||||||
Distributed earnings of affiliates | - | 3 | - | |||||||||
Amortization of capitalized interest | - | - | 1 | |||||||||
Interest capitalized | (9 | ) | (7 | ) | - | |||||||
Minority interest | (1 | ) | - | - | ||||||||
Earnings (loss) as adjusted | $ | 702 | $ | 391 | $ | 22,685 | ||||||
Fixed charges: | ||||||||||||
Interest expensed and capitalized and amortization | ||||||||||||
of debt discounts and issuance costs (a) | $ | 345 | $ | 346 | $ | 42 | ||||||
Portion of rental expense representative | ||||||||||||
of the interest factor | 124 | 149 | 22 | |||||||||
Fixed charges, as above | 469 | 495 | 64 | |||||||||
Preferred stock dividend requirements (pre-tax) (b) | 10 | 4 | - | |||||||||
Fixed charges including preferred stock dividends | $ | 479 | $ | 499 | $ | 64 | ||||||
Ratio of earnings to fixed charges | 1.50 | (c) | 354.45 | |||||||||
Ratio of earnings to fixed charges and preferred dividend requirements | 1.47 | (c) | 354.45 |
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(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 47%. Preferred dividend requirements were nonexistent for the Predecessor Company as push down accounting was not applied prior to the adoption of fresh-start reporting. |
(c) | Earnings were inadequate to cover both fixed charges and fixed charges and preferred dividend requirements by $104 million and $108 million, respectively, for the period from February 1 to June 30, 2006. |