Exhibit 12
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
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| Successor |
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| Predecessor |
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| Period from |
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| Period from |
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(In millions) |
| 2006 |
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| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Earnings (losses): |
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Earnings (loss) before income taxes & adjustments for minority interest and equity earnings/(losses) in affiliates |
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| $ | 62 |
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| $ | 22,620 |
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| $ | (21,038 | ) | $ | (1,682 | ) | $ | (2,772 | ) | $ | (3,094 | ) |
Add (deduct): |
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Fixed charges, from below |
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| 1,053 |
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| 64 |
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| 786 |
| 620 |
| 654 |
| 762 |
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Distributed earnings of affiliates |
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| 4 |
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| — |
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| 3 |
| 2 |
| 2 |
| 2 |
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Amortization of capitalized interest |
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| — |
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| 1 |
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| 14 |
| 16 |
| 17 |
| 17 |
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Minority interest |
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| (4 | ) |
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| — |
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| — |
| — |
| — |
| — |
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Interest capitalized |
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| (15 | ) |
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| — |
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| 3 |
| (1 | ) | (3 | ) | (25 | ) | ||||||
Earnings (loss) as adjusted |
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| $ | 1,100 |
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| $ | 22,685 |
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| $ | (20,232 | ) | $ | (1,045 | ) | $ | (2,102 | ) | $ | (2,338 | ) |
Fixed charges: |
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Interest expensed and capitalized and amortization of debt discounts and issuance costs (a) |
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| $ | 729 |
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| $ | 42 |
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| $ | 495 |
| $ | 462 |
| $ | 538 |
| $ | 577 |
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Portion of rental expense representative of the interest factor |
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| 324 |
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| 22 |
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| 291 |
| 158 |
| 116 |
| 185 |
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Fixed charges, as above |
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| 1,053 |
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| 64 |
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| 786 |
| 620 |
| 654 |
| 762 |
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Preferred stock dividend requirements (pre-tax) (b) |
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| 18 |
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| — |
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| — |
| — |
| — |
| — |
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Fixed charges including preferred stock dividends |
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| $ | 1,071 |
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| $ | 64 |
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| $ | 786 |
| $ | 620 |
| $ | 654 |
| $ | 762 |
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Ratio of earnings to fixed charges |
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| 1.05 |
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| 354.45 |
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| (c | ) | (c | ) | (c | ) | (c | ) | ||||||
Ratio of earnings to fixed charges and preferred dividend requirements |
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| 1.03 |
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| (b | ) |
| (b | ) | (b | ) | (b | ) | (b | ) |
(a) Amortization of debt discounts includes amortization of fresh-start valuation discounts.
(b) Successor Company dividends were adjusted using an estimated 2006 effective tax rate of approximately 48%. 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 fixed charges by $21.0 billion in 2005, $1.7 billion in 2004, $2.8 billion in 2003 and $3.1 billion in 2002.