Exhibit 12
AMERICAN AIRLINES, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions)
1999 | 2000 | 2001 | 2002 | 2003 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Earnings (loss) before income taxes and cumulative effect of accounting change | $ | 1,054 | $ | 1,282 | $ | (2,449 | ) | $ | (3,669 | ) | $ | (1,409 | ) | |||||||
Add: Total fixed charges (per below) | 989 | 1,068 | 1,435 | 1,532 | 1,421 | |||||||||||||||
Less: Interest capitalized | 111 | 143 | 135 | 80 | 66 | |||||||||||||||
Total earnings | $ | 1,932 | $ | 2,207 | $ | (1,149 | ) | $ | (2,217 | ) | $ | (54 | ) | |||||||
Fixed charges: | ||||||||||||||||||||
Interest | $ | 215 | $ | 281 | $ | 406 | $ | 522 | $ | 525 | ||||||||||
Portion on rental expense representative of the interest factor | 773 | 785 | 1,025 | 1,005 | 888 | |||||||||||||||
Amortization of debt expense | 1 | 2 | 4 | 5 | 8 | |||||||||||||||
Total fixed charges | $ | 989 | $ | 1,068 | $ | 1,435 | $ | 1,532 | $ | 1,421 | ||||||||||
Ratio of earnings to fixed charges | 1.95 | 2.07 | — | — | — | |||||||||||||||
Coverage deficiency | — | — | $ | 2,584 | $ | 3,749 | $ | 1,475 | ||||||||||||
Note: | In April 2001, the Board of Directors of American approved the guarantee by American of AMR’s debt obligations. As of December 31, 2003, American has guaranteed approximately $936 million of unsecured debt and approximately $503 million of secured debt. The impact of these unconditional guarantees is not included in the above computation. |