FlyerTalk Forums - View Single Post - How much have value of miles dropped in the last year?
Old Aug 28, 2002 | 5:09 pm
  #13  
Tino
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Randy Petersen:
From 1993 to 2001 airlines gave away 58% more awards during this period - from 8.3 million (1993) to 13.2 million (2001) on an annual basis. </font>
Here's the stat to use (I'll keep the years consistent):

1993:
202 billion miles redeemed / 1867 billion outstanding = 11% of outstanding miles were allowed to be cashed in

2001:
342 billion miles redeemed / 7889 billion outstanding = 4.3% of outstanding miles were allowed to be cashed in

Looks like deflation to me, unless of course you think people are willing to hold their miles for 25+ years at that rate.

AAaLot is right on - the draconian restrictions make award seats worth no more than the cheapest fare sale prices.
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