EX-12.1 2 d558908dex121.htm EX-12.1

Exhibit 12.1

United Continental Holdings, Inc. and Subsidiary Companies

Computation of Ratio of Earnings to Fixed Charges

(In millions, except ratios) |  |  |  |  | Three Months Ended March 31, 2018 |  |  | 2017 (a) |  |  | 2016 (a) |  |  | 2015 |  |  | 2014 |  |  | 2013 |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings before income taxes |  |  |  |  |  | $ | 184 |  |  | $ | 3,040 |  |  | $ | 3,773 |  |  | $ | 4,219 |  |  | $ | 1,128 |  |  | $ | 539 |
Add (deduct): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges, from below |  |  |  |  |  |  | 349 |  |  |  | 1,417 |  |  |  | 1,430 |  |  |  | 1,428 |  |  |  | 1,648 |  |  |  | 1,629 |
Amortization of capitalized interest |  |  |  |  |  |  | 2 |  |  |  | 9 |  |  |  | 11 |  |  |  | 12 |  |  |  | 12 |  |  |  | 11 |
Distributed earnings of affiliates |  |  |  |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | — |
Interest capitalized |  |  |  |  |  |  | (19) |  |  |  | (84) |  |  |  | (72) |  |  |  | (49) |  |  |  | (52) |  |  |  | (49) |
Equity earnings in affiliates |  |  |  |  |  |  | (5) |  |  |  | (4) |  |  |  | — |  |  |  | (2) |  |  |  | (1) |  |  |  | (1) |
Earnings as adjusted |  |  |  |  |  | $ | 511 |  |  | $ | 4,378 |  |  | $ | 5,143 |  |  | $ | 5,609 |  |  | $ | 2,736 |  |  | $ | 2,129 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  | $ | 176 |  |  | $ | 671 |  |  | $ | 674 |  |  | $ | 669 |  |  | $ | 735 |  |  | $ | 783 |
Portion of rent expense representative of the interest factor (b) |  |  |  |  |  |  | 173 |  |  |  | 746 |  |  |  | 756 |  |  |  | 759 |  |  |  | 913 |  |  |  | 846 |
Fixed charges |  |  |  |  |  | $ | 349 |  |  | $ | 1,417 |  |  | $ | 1,430 |  |  | $ | 1,428 |  |  | $ | 1,648 |  |  | $ | 1,629 |
Ratio of earnings to fixed charges |  |  |  |  |  |  | 1.46 |  |  |  | 3.09 |  |  |  | 3.60 |  |  |  | 3.93 |  |  |  | 1.66 |  |  |  | 1.31 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of United Continental Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018 for additional information related to the adjusted results.

(b) Imputed interest applied to rent expense.