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AMERICAN AIRLINES, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions)
| 1998 | 1999 | 2000 | 2001 | 2002 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings: | ||||||||||||||||||
Earnings (loss) before income taxes and cumulative effect of accounting change | $ | 1,745 | $ | 1,054 | $ | 1,282 | $ | (2,449 | ) | $ | (3,669 | ) | ||||||
Add: Total fixed charges (per below) | 906 | 989 | 1,068 | 1,435 | 1,532 | |||||||||||||
Less: Interest capitalized | 97 | 111 | 143 | 135 | 80 | |||||||||||||
Total earnings | $ | 2,554 | $ | 1,932 | $ | 2,207 | $ | (1,149 | ) | $ | (2,217 | ) | ||||||
Fixed charges: | ||||||||||||||||||
Interest | $ | 208 | $ | 215 | $ | 281 | $ | 406 | $ | 522 | ||||||||
Portion on rental expense representative of the interest factor | 697 | 773 | 785 | 1,025 | 1,005 | |||||||||||||
Amortization of debt expense | 1 | 1 | 2 | 4 | 5 | |||||||||||||
Total fixed charges | $ | 906 | $ | 989 | $ | 1,068 | $ | 1,435 | $ | 1,532 | ||||||||
Ratio of earnings to fixed charges | 2.82 | 1.95 | 2.07 | — | — | |||||||||||||
Coverage deficiency | — | — | — | $ | 2,584 | $ | 3,749 | |||||||||||
Note: | In April 2001, the Board of Directors of American approved the guarantee by American of AMR's and AMR Eagle's existing debt obligations. As of December 31, 2002, this guarantee covered approximately $636 million of unsecured debt and approximately $538 million of secured debt. The impact of these unconditional guarantees is not included in the above computation. |
AMERICAN AIRLINES, INC. Computation of Ratio of Earnings to Fixed Charges (in millions)