A similar point was just made in a
VFTW article today:
Sells upgrades cheap.. too cheap? American Airlines has a good international business seat, and considering how bad the food is on Delta and United theirs is more than serviceable. It’s also very accessible, since they sell upgrades online very aggressively. But they frequently sell upgrades for less than the cash co-pay on a mileage upgrade award while not making mileage upgrade award seats available. That’s bad for the mileage program, and even for short-term revenue!