Another cost factor is the following (I'm not sure it it applies to anyone who is granted AA buddy passes):

On some carriers, certain employees who are granted buddy passes pay income tax on the imputed value of the trip taken.

Here's an example: If the one-way Y fare from MIA-LAX is $1000, 10% of that price minus the service fee ($10 in this case) - or $90 - is the Imputed value of the trip. Therefore, $90 (or $180 for a round-trip) would be reported as income on the employee's W-2 form.

At tax time, if the employee is in the 33% tax bracket, the "out-of-pocket cost to grant the buddy pass would be $30 ($60 for a round-trip).