• Should I use my miles for an award? / How much is an AAdvantage mile worth?
There are widely varying thoughts on this question, with no single correct answer. When deciding whether or not to redeem AAdvantage miles for an award, a commonly cited value is 1¢ per mile, although some use 2¢ or 3¢. Indeed, much higher redemption values are often possible when redeeming Upgrade Awards (although, arguably, few would or could actually pay the full quoted price of an F/J ticket out of pocket) and oneworld Round-the-World Awards. Notably, AAdvantage miles can be purchased from AA for as little as 2.6¢ per mile, or even less with certain promotions. It is also important to remember that Award Travel does not accrue elite-qualifying miles or points or AAdvantage miles, further influencing each individual's calculations.
For a detailed analysis of multiple programs by BoardingArea.com blogger Ben Schlappig, see:
InsideFlyer August 2010: The Value of a Point or Mile
For Randy Petersen's take on this question, see these articles:
InsideFlyer October 2010: Opening Remarks
CreditCards.com: Using frequent flier miles on a tax-deductible trip
AA.com:
buyAAmiles / giftAAmiles / shareAAmiles
FT:
Value of AAdvantage miles (consolidated)
FT:
How do you decide if you should use miles or just pay for it?