AIRBORNE, INC. AND SUBSIDIARIES RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 (Dollars in thousands) ACTUALS FOR THE YEAR ENDED DECEMBER 31, 1997 1998 1999 2000 2001 ------------ ------------ ------------ ----------- ----------- EARNINGS: Earnings (loss) before taxes $197,465 $221,585 $147,388 $23,226 ($28,904) Fixed charges 41,819 31,069 31,682 40,670 43,331 Less: Capitalized interest expenses (1,869) (5,850) (3,969) (6,770) (2,377) ------------ ------------ ------------ ----------- ----------- Total earnings $237,415 $246,804 $175,101 $57,126 $12,050 ============ ============ ============ =========== =========== CALCULATION OF FIXED CHARGES: Net interest expense $ 27,790 $ 12,882 $ 17,262 $23,425 $19,868 Add: Capitalized interest expenses 1,869 5,850 3,969 6,770 2,377 Add: Interest income 105 169 232 371 1,696 ------------ ------------ ------------ ----------- ----------- Gross interest expense 29,764 18,901 21,463 30,566 23,941 DISCOUNTS ON SALES OF RECEIVABLES - - - 96 9,293 AMORTIZATION OF DEBT EXPENSE 520 383 377 452 800 RENTAL EXPENSE: Total 115,350 117,862 98,416 95,559 92,969 Factor 10% 10% 10% 10% 10% ------------ ------------ ------------ ----------- ----------- Net "interest" component 11,535 11,786 9,842 9,556 9,297 ------------ ------------ ------------ ----------- ----------- TOTAL FIXED CHARGES $ 41,819 $ 31,069 $ 31,682 $40,670 $43,331 ============ ============ ============ =========== =========== RATIO OF EARNINGS TO FIXED CHARGES 5.68 7.94 5.53 1.40 - ============ ============ ============ =========== ===========