Exhibit 12
AMERICAN AIRLINES, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions)
Computation of Ratio of Earnings to Fixed Charges
(in millions)
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) before income taxes and cumulative effect of accounting change | $ | 164 | $ | (892 | ) | $ | (821 | ) | $ | (1,409 | ) | $ | (3,669 | ) | ||||||
Add: Total fixed charges (per below) | 1,705 | 1,566 | 1,480 | 1,421 | 1,532 | |||||||||||||||
Less: Interest capitalized | 29 | 64 | 77 | 66 | 80 | |||||||||||||||
Total earnings (loss) | $ | 1,840 | $ | 610 | $ | 582 | $ | (54 | ) | $ | (2,217 | ) | ||||||||
Fixed charges: | ||||||||||||||||||||
Interest | $ | 842 | $ | 724 | $ | 653 | $ | 525 | $ | 522 | ||||||||||
Portion of rental expense representative of the interest factor | 848 | 831 | 815 | 888 | 1,005 | |||||||||||||||
Amortization of debt expense | 15 | 11 | 12 | 8 | 5 | |||||||||||||||
Total fixed charges | $ | 1,705 | $ | 1,566 | $ | 1,480 | $ | 1,421 | $ | 1,532 | ||||||||||
Ratio of earnings to fixed charges | 1.08 | — | — | — | — | |||||||||||||||
Coverage deficiency | — | $ | 956 | $ | 898 | $ | 1,475 | $ | 3,749 | |||||||||||
Note: | As of December 31, 2006, American has guaranteed approximately $1.1 billion of unsecured debt and approximately $388 million of secured debt. The impact of these unconditional guarantees is not included in the above computation. |