Part of where your "8¢ per mile" figure comes from is artificially inflated F/J fares. Over half of the "cost" of your ticket comes from the difference between what we see as the fare when we look at an airline or travel Web site and what the airline really needs to get in order to make money. Look around any international front cabin: nearly everyone is there on an award ticket, an award upgrade, a non-revenue ticket, a corporate discount, a two-for-one credit card promotion or something else. Those who really pay what we see as the fare are few and far between.

(Ask yourself: what is the most the fare could be for you to pay it, in cash, out of your own pocket? That's the true value of this award. The official fare is just a number, though it comes in handy for bragging rights.)