EXHIBIT 12
Alaska Air Group, Inc.
Calculation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
| 2001 | 2000 | 1999 | 1998 | 1997 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings: | ||||||||||||||||
Income before income tax expense | $ | (57,500 | ) | $ | (15,700 | ) | $ | 220,700 | $ | 204,400 | $ | 123,600 | ||||
Less: Capitalized interest | (8,100 | ) | (15,500 | ) | (10,200 | ) | (6,600 | ) | (5,300 | ) | ||||||
Add: | ||||||||||||||||
Interest on indebtedness | 47,400 | 36,000 | 16,300 | 21,200 | 33,600 | |||||||||||
Amortization of debt expense | 703 | 330 | 440 | 682 | 685 | |||||||||||
Portion of rent under long-term operating leases representative of an interest factor | 84,661 | 80,680 | 81,437 | 80,547 | 72,900 | |||||||||||
Earnings Available for Fixed Charges | $ | 67,164 | $ | 85,810 | $ | 308,677 | $ | 300,229 | $ | 225,485 | ||||||
Fixed Charges: | ||||||||||||||||
Interest | 47,400 | 36,000 | 16,300 | 21,200 | 33,600 | |||||||||||
Amortization of debt expense | 703 | 330 | 440 | 682 | 685 | |||||||||||
Portion of rent under long-term operating leases representative of an interest factor | 84,661 | 80,680 | 81,437 | 80,547 | 72,900 | |||||||||||
Total Fixed Charges | $ | 132,764 | $ | 117,010 | $ | 98,177 | $ | 102,429 | $ | 107,185 | ||||||
Ratio of Earnings to Fixed Charges | 0.51 | 0.73 | 3.14 | 2.93 | 2.10 | |||||||||||
Coverage deficiency | $ | 65,600 | $ | 31,200 | — | — | — | |||||||||