FlyerTalk Forums - View Single Post - Which Routes Will AA Cut Now? (as of late May 2008)
Old May 23, 2008, 12:14 pm
  #33  
martin33
 
Join Date: Apr 2001
Location: PIT/DFW/MEL; AA Exec. Platinum & 4MM, QF WP
Posts: 7,689
Originally Posted by dieuwer2
Speaking about loss making... AAward flights are madness and contribute to the losses.
That's just plain invention. AMR's 10-K disclosure is extremely clear that award redemptions do not displace revenue flying. If they did to any significant degree, in the opinion of the auditors, then the company would have to record the liability value of miles at a huge sum, instead of peanuts. The marginal cost of any NetSaver domestic award ticket (by far the most popular redemption) is minimal, and in any event more than covered by award redemption fees collected.

Granted, AAnytime awards might displace revenue flying, but they are minuscule in number.
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