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
Nine Months Ended | ||||||||
September 30, | ||||||||
(In millions) | 2008 | 2007 | ||||||
Earnings (loss): | ||||||||
Earnings (loss) before income taxes & adjustments for minority interest and equity earnings of affiliates | $ | (4,065 | ) | $ | 814 | |||
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 | $ | (3,469 | ) | $ | 1,483 | |||
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) | 2.17 | ||||||
Ratio of earnings to fixed charges and preferred dividend requirements | (c) | 2.13 | ||||||
(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. |