1
EXHIBIT 12(a)
Alaska Air Group, Inc.
Calculation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
Three Months Ended March 31,
1996 1995
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Earnings:
Income before income tax expense ($13,508) ($29,937)
Less: Capitalized interest 0 0
Add:
Interest on indebtedness 11,063 13,329
Amortization of debt expense 386 268
Portion of rent under long-term
operating leases representative
of an interest factor 19,693 18,550
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Total Earnings Available for
Fixed Charges $17,634 $ 2,210
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Fixed Charges:
Interest 11,063 13,329
Amortization of debt expense 386 268
Portion of rent under long-term
operating leases representative
of an interest factor 19,693 18,550
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Total Fixed Charges $31,142 $32,147
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Ratio of Earnings to Fixed Charges 0.57 0.07
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Deficiency $13,508 $29,937
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CALCULATIONS
Amortization of debt expense:
AAG account 81-8410 179 167
AAGL account 81-8410 0 0
AS account 81-8410 207 101
QX account 9001 0 0
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Total amortization of debt expense 386 268
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Aircraft rent 44,129 41,696
Landing fees and other rent 14,951 13,954
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Total rents 59,080 55,650
One-third of total rents 19,693 18,550
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2
EXHIBIT 12(a)
Alaska Air Group, Inc.
Calculation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
1995 1994 1993 1992 1991
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Earnings:
Income (loss) before income tax expense
and accounting change $ 33,983 $ 40,961 ($45,812) ($125,706) $16,207
Less: Capitalized interest (208) (353) (446) (6,102) (8,301)
Add:
Interest on indebtedness 51,479 46,960 37,624 43,223 40,180
Amortization of debt expense 1,100 1,368 690 643 519
Portion of rent under long-term operating
leases representative of an interest
factor 67,295 65,618 60,136 49,889 41,327
-------- -------- -------- --------- -------
Earnings Available for Fixed Charges $153,649 $154,554 $52,192 ($38,053) $89,932
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Fixed Charges:
Interest 51,479 46,960 37,624 43,223 40,180
Amortization of debt expense 1,100 1,368 690 643 519
Portion of rent under long-term operating
leases representative of an interest
factor 67,295 65,618 60,136 49,889 41,327
-------- -------- -------- --------- -------
Total Fixed Charges $119,874 $113,946 $98,450 $ 93,755 $82,026
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Ratio of Earnings to Fixed Charges 1.28 1.36 0.53 (0.41) 1.10
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Coverage deficiency -- -- $46,258 $ 131,808 --
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