From the Chicago Tribune:

http://www.chicagobreakingbusiness.c...nited-64m.html

"UAL Corp. said it will recognize an extra $64 million in revenue for the quarter after fresh data revealed that more frequent-flyer miles were set to expire, reducing the negative sales impact of the incentive."


Since UAL recognizes RDM as having a negative sales impact, I would be intrested to see exactly how they quantify that. What price does it put on each RDM? Further, if they view RDM as a liability akin to taking a revnue fare off of a given flight (and they financially recognize it as the equivalent)... it would be nice if they treated award fare with the same benefits of revenue fares (i.e. upgrades, RDM accural, etc).

I always wonder why the hotel industry treats guests staying on redeemed points the same as revenue customers (i.e. room upgrades, platinum check-in bonus points, etc).