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 | ||||||||||||||||||||||||
Period from February 1 to December 31, | Period from January 1 to January 31, | ||||||||||||||||||||||||
(In millions, except ratios) | 2009 | 2008 | 2007 | 2006 | 2006 | 2005 | |||||||||||||||||||
Earnings (losses): | |||||||||||||||||||||||||
Earnings (loss) before income taxes & adjustments for minority interest and equity earnings (losses) in affiliates | $ | (647 | ) | $ | (5,380 | ) | $ | 653 | $ | 44 | $ | 22,620 | $ | (21,038 | ) | ||||||||||
Add (deduct): | |||||||||||||||||||||||||
Fixed charges, from below | 911 | 869 | 938 | 1,071 | 64 | 786 | |||||||||||||||||||
Distributed earnings of affiliates | 2 | 2 | 3 | 4 | — | 3 | |||||||||||||||||||
Amortization of capitalized interest | 3 | 1 | 1 | — | 1 | 14 | |||||||||||||||||||
Minority interest | (1 | ) | (2 | ) | (2 | ) | (4 | ) | — | — | |||||||||||||||
Interest capitalized | (10 | ) | (20 | ) | (19 | ) | (15 | ) | — | 3 | |||||||||||||||
Earnings (loss) as adjusted | $ | 258 | $ | (4,530 | ) | $ | 1,574 | $ | 1,100 | $ | 22,685 | $ | (20,232 | ) | |||||||||||
Fixed charges: | |||||||||||||||||||||||||
Interest expensed and capitalized and amortization of debt discounts and issuance costs (a) | $ | 577 | $ | 571 | $ | 703 | $ | 747 | $ | 42 | $ | 495 | |||||||||||||
Portion of rental expense representative of the interest factor | 334 | 298 | 235 | 324 | 22 | 291 | |||||||||||||||||||
Fixed charges, as above | 911 | 869 | 938 | 1,071 | 64 | 786 | |||||||||||||||||||
Preferred stock dividend requirements (pre-tax) (b) | — | 3 | 18 | 29 | — | — | |||||||||||||||||||
Fixed charges including preferred stock dividends | $ | 911 | $ | 872 | $ | 956 | $ | 1,100 | $ | 64 | $ | 786 | |||||||||||||
Ratio of earnings to fixed charges | (c | ) | (d | ) | 1.68 | 1.03 | 354.45 | (d | ) | ||||||||||||||||
Ratio of earnings to fixed charges and preferred dividend requirements | N/A | (d | ) | 1.65 | 1.00 | N/A | N/A | ||||||||||||||||||
(a) | Amortization of debt discounts includes amortization of fresh-start valuation discounts. |
(b) | Successor Company dividends were adjusted using the effective tax rate for each applicable year, except 2006. In 2006, preferred dividends were grossed-up based on the Company’s effective tax rate only to the extent of the Company’s income tax provision for the period. |
(c) | Earnings were inadequate to cover fixed charges by $653 million and by $21.0 billion in 2005, respectively. |
(d) | Earnings were inadequate to cover both fixed charges and fixed charges and preferred dividend requirements by $5.4 billion in 2008. |
N/A | Not applicable. |