Originally Posted by
astanley
Depends. If the net margin captured in the 12.5k EQM >= the net margin captured on the F seat at full fare, the upgrade is a punt assuming you have little demand. If the net margin is less than the 12.5k EQM, or you can generate ancillary revenue by filling it as a paid F seat, AA should always maximize the seats sold.
I was paid F on my most recent LAX-BOS, redeye, and the upgrade list was 27 deep. I don't recall how many cleared.
Well, that also depends on the fare that it's being compared to as well. How many of those F seats are going out at full fare? AA's expecting about $1500 for those 12.5k EQMs (both are halfway to the next elite tier), so they're kicking back about $150-200 in value for 4 stickers (not sure the purchase price at this point). For most people, that's either going to upgrade a 3+ hour flight, require more stickers bought or saved up for a transcon. Reality I see in a lot of cases is that the purchase price is often less than the value of the stickers required. And in many cases, I see refundable F pricing out below a full Y ticket. I think your ancillary argument makes more sense for a carrier that gives free upgrades like UA than one that requires some form of currency (either cash, miles, or stickers) like AA.
I've been seeing a lot more F seats sell out. Granted, I buy a lot of my tickets a few days before departure, where it's not uncommon to see F seats either sold out or only a couple seats left.