Originally Posted by
kwflyer
So this interesting. We can now theorize that 5k in ap miles equals $1 in reimbursement to AC. But that wouldn't be totally right as ap reimburses ac on a per segment basis up to a certain maximum.
Unless, on say a ow shorthaul the max reimbursement is 7.50 (which I've heard to be true) so ap would be paying 1.50 per segment up to 7.50 (5 segment max although ymmv). Which would explain the good profit margin that ac gets in the taxes and fees.
No, because this is Market Fare. You're talking about Fixed Mileage.
I'd also presume that there's a minimum number of miles they'll charge on these redemptions, hence why it's an even 5000, rather than something more in-line with their typical rate (which would put it in the low hundreds of miles).