1 Exhibit 12 SOUTHWEST AIRLINES CO. CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES ($ in millions) Year Ended December 31, -------------------------------------------------- 1996 1995 1994 1993 1992 ------ ------ ------ ------ ------ Earnings Income before income taxes and cumulative effect of accounting changes $341.4 $305.1 $299.5 $259.6 $157.4 Add: Fixed charges 184.1 169.1 141.6 132.1 113.8 Less: Interest capitalized 22.3 31.4 26.3 17.8 15.4 ------ ------ ------ ------ ------ Total $503.2 $442.8 $414.8 $373.9 $255.8 ====== ====== ====== ====== ====== Fixed charges Interest expense $37.0 $27.4 $27.1 $40.7 $ 43.7 Add: Interest capitalized 22.3 31.4 26.3 17.8 15.4 ------ ------ ------ ------ ------ Gross interest expense 59.3 58.8 53.4 58.5 59.1 Add: Interest factor of operating lease expense 124.8 110.3 88.2 73.6 54.7 ------ ------ ------ ------ ------ Total $184.1 $169.1 $141.6 $132.1 $113.8 ====== ====== ====== ======= ====== Ratio of earnings to fixed charges 2.73 2.62 2.93 2.83 2.25 ====== ====== ====== ====== ======