1 EXHIBIT 12 AIRBORNE FREIGHT CORPORATION RATIO OF EARNINGS TO FIXED CHARGES (In thousands) ACTUALS FOR THE SIX MONTHS ENDED ACTUALS FOR YEAR ENDED DECEMBER 31, ------------------------ --------------------------------------------------- June 30, June 30, DESCRIPTION 1990 1991 1992 1993 1994 1994 1995 - ----------- ------- ------- ------- ------- ------- --------- --------- Earnings: Earnings before taxes $55,439 $48,415 $ 9,087 $59,027 $64,275 $33,501 $ 7,316 Fixed charges 19,776 23,491 29,764 35,390 36,758 17,689 20,688 Less Capitalized interest expense (4,107) (4,476) (2,466) (2,094) (2,127) (900) (2,021) ------- ------- ------- ------- ------- ------- ------- Total Earnings $71,108 $67,430 $36,385 $92,323 $98,906 $50,290 $25,983 ======= ======= ======= ======= ======= ======= ======= Calculation of fixed charges Interest expense $12,964 $15,318 $21,245 $26,187 $26,790 $12,910 $15,710 Add interest income 795 677 587 704 537 306 128 ------- ------- ------- ------- ------- ------- ------- Gross interest expense 13,759 15,995 21,832 26,891 27,327 13,216 15,838 Amortization of debt expense 98 166 291 385 433 216 216 Rental expense Total 59,192 73,301 76,414 81,138 89,975 42,569 46,338 Factor 10% 10% 10% 10% 10% 10% 10% ------- ------- ------- ------- ------- ------- ------- Net "interest" component 5,919 7,330 7,641 8,114 8,998 4,257 4,634 ------- ------- ------- ------- ------- ------- ------- Total fixed charges $19,776 $23,491 $29,764 $35,390 $36,758 $17,689 $20,688 ======= ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges 3.60 2.87 1.22 2.61 2.69 2.84 1.26 ==== ==== ==== ==== ==== ==== ====