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
Nine Months Ended | ||||||||
September 30, | ||||||||
(In millions) | 2008 | 2007 | ||||||
Earnings (loss): | ||||||||
Earnings (loss) before income taxes & adjustments for minority interest and equity earnings in affiliates | $ | (4,077 | ) | $ | 794 | |||
Add (deduct): | ||||||||
Fixed charges, from below | 612 | 683 | ||||||
Amortization of capitalized interest | 1 | — | ||||||
Distributed earnings of affiliates | 1 | 2 | ||||||
Interest capitalized | (16 | ) | (14 | ) | ||||
Minority interest | (2 | ) | (2 | ) | ||||
Earnings (loss) as adjusted | $ | (3,481 | ) | $ | 1,463 | |||
Fixed charges: | ||||||||
Interest expensed and capitalized and amortization of debt discounts and issuance costs (a) | $ | 392 | $ | 506 | ||||
Portion of rental expense representative of the interest factor | 220 | 177 | ||||||
Fixed charges, as above | 612 | 683 | ||||||
Preferred stock dividend requirements (pre-tax) (b) | 3 | 13 | ||||||
Fixed charges including preferred stock dividends | $ | 615 | $ | 696 | ||||
Ratio of earnings to fixed charges | (c) | 2.14 | ||||||
Ratio of earnings to fixed charges and preferred dividend requirements | (c) | 2.10 | ||||||
(a) | Amortization of debt discounts includes amortization of fresh-start valuation discounts. | |
(b) | 2007 dividends were adjusted using an estimated 2007 effective tax rate of approximately 43%. The Company had an immaterial tax rate in the 2008 period. | |
(c) | Earnings were inadequate to cover both fixed charges and fixed charges and preferred dividend requirements by $4.1 billion for the nine months ended September 30, 2008. |