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Exhibit 12.1
UAL Corporation and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
Successor
Predecessor
(In millions)
2007
Period from
February 1 to
December 31,
2006
Period from
January 1 to
January 31,
2006
2005
2004
2003
Earnings (losses):
Earnings (loss) before income taxes &
adjustments for minority interest and
equity earnings/(losses) in affiliates $ 697 $ 47 $ 22,846 $ (21,178) $ (1,724) $ (2,802)
Add (deduct):
Fixed charges, from below 895 1,051 63 775 606 639
Distributed earnings of affiliates 3 4 — 3 2 2
Amortization of capitalized interest 1 — 1 14 16 17
Minority interest (2) (4) — — — —
Interest capitalized (19) (15) — 3 (1) (3)
Earnings (loss) as adjusted $ 1,575 $ 1,083 $ 22,910 $ (20,383) $ (1,101) $ (2,147)
Fixed charges:
Interest expensed and capitalized and
amortization of debt discounts and
issuance costs(a) $ 661 $ 728 $ 42 $ 484 $ 448 $ 523
Portion of rental expense
representative of the interest factor 234 323 21 291 158 116
Fixed charges, as above 895 1,051 63 775 606 639
Preferred stock dividend requirements
(pre-tax)(b) 18 18 1 10 10 10
Fixed charges including preferred
stock dividends $ 913 $ 1,069 $ 64 $ 785 $ 616 $ 649
Ratio of earnings to fixed charges 1.76 1.03 363.65 (c) (c) (c)
Ratio of earnings to fixed charges and
preferred dividend requirements 1.73 1.01 357.97 (c) (c) (c)
(a)
Amortization of debt discounts includes amortization of fresh-start valuation discounts.
(b)
Successor Company dividends were adjusted using 2007 and 2006 effective tax rates of approximately 43% and 49%, respectively.
(c)
Earnings were inadequate to cover both fixed charges and fixed charges and preferred dividend requirements by $21.2 billion in 2005, $1.7 billion in
2004 and $2.8 billion in 2003.
Source: UNITED AIR LINES INC, 10-K, February 29, 2008