How to make battery indicator show battery status instead of UPS battery on MacBook Air
You can disable the UPS status by turning it off in the System Preferences > Energy Saver > UPS settings:



Just uncheck "Show UPS status in the menu bar" and you should have only your internal battery being displayed.

Update:  That check box shows in either the "Power" or "UPS" tab; not just the UPS Tab as described above.  It's still in exactly the same place as the image above, but I wanted to be accurate.