Originally Posted by
phlashba
I can see that, but have to wonder how any price paid last year or at any time stacks up to the current cost (jet fuel) of transporting a passenger. The ratios have to be way off by now.
As previously posted, many of the miles aren't used at all.
Many of the rest are used for MileSAAver awards. Given capacity controls, nearly all of those seats would have been empty anyhow.
Others are used for upgrades. That usually just means someone else wasn't moved forward. If yield management makes an upgrade seat available to someone who doesn't fly much, a paying passenger wouldn't have been in it. Doesn't cost much more to fly someone in front than in back. It doesn't cost any more to fly person X in front, leaving person Y in back, than the other way around.
Some are used for AAnytime awards - but for those, AA gets twice the miles and hence twice the $$.
All in all, while I haven't inspected AA's books, I suspect they come out ahead.