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. |