Ahh...the dreaded standby. This is how standing by for first works:

There are three basic priority codes involved for standing by for first class: DSR, UPG, and R. Here is how it works:

You are on a F-class fare (doesn't matter what kind) with a confirmed seat in F. Suddenly, something goes wonky, such as an equipment change, and there are suddenly more people with F-class tickets than there are seats. If you are one of the unlucky ones who doesn't have a seat assignment, you go on the standby list as a DSR. (This sometimes happens with travel agents who "forget" to book their clients in the airline's CRS but have issued a paper ticket for them for the flight.)

The next one is more common. You are confirmed on the flight and want to upgrade with stickers or a certificate, but there is no space available. You go on the standby list as a UPG, ranked in order of status: UPG1 - EXP, UPG2 - PLT, UPG3 - GLD, UPG - peons.

Then there are the REAL standbys! You are NOT confirmed on that flight in any way, shape, or form. You are listed as an R, again ranked by status: R3, R2, R1, R. Elite members are ALWAYS to be listed as R; Sabre automatically assigns the number status based on your Elite level. Regular "R" is used for non-Elite who have F,J,Y, or B fares. All other pax get listed as DRX and their is no distinguishment there - it's first come, first serve.

So, when processing upgrades, the pecking order goes:

DSR
UPG1
UPG2
UPG3
UPG
R1
R2
R3
R

If you are listed as an "R" type on the standby list, unless you are holding an F-class fare, you must make sure to tell the gate agent you want to standby for F/C as well. They won't assume you want it.

Wait a second. You're on a Y-UP fare and it has a penalty? That must be new. Y-UP fares have never had a penalty fee. Does the fare basis code have an "N" or "NR" in it? If so, then what won't AA think of next?**


**Okay. I had to see it myself. I went to aa.com and checked the routing. Not to say I didn't believe you, but I found it odd that AA would actually do that. Wow. They never cease to amaze me. Part of the whole point of YUP was that it was a full Y with a free first class upgrade. Just one more product that is slowly being devalued. Then again, when an airline earns millions upon millions of dollars in change fees alone, it's no wonder.

Edit: I fixed the priority list. I had it backwards, giving Golds higher status than EXP. Then again, considering I AM a Gold, maybe it was just subconscious wishful thinking.