Yes, full-fare Y. I believe AA only credits full-fare IB flights. At CAD$ 187 one-way for GRX-MAD, it was actually a deal as the train time between the two cities are cumbersome and near CAD$ 100 (much more if you take the AVE Sevilla-Madrid)...

As for paying extra for business class, intra-Europe business is pretty pathetic. Same seats on the 3-3 MD-88, but the middle seat is blocked out. Scheduled flight time was 50 minutes, not worth the extra 10-20 %.