American Express reported weaker-than-expected travel spending in the second quarter, with economy class domestic airfare leading the decline. The company’s CFO noted that airline spending remained flat from a year ago, while premium cabin bookings and high-end hotel reservations increased by 10% and 9%, respectively.
However, airfare prices have fallen, reducing consumer spending on flights. Airfare dropped 3.5% in June compared to the previous year, despite overall inflation rising. This could be a concern for Amex, given its airline partnerships and extensive airport lounge network.
Despite beating expectations for profit and revenue, American Express’ shares fell 2.5% due to investor concerns over the cost of launching a new rewards program for its Platinum card. The company faces increased competition in the premium card space from rival financials JPMorgan Chase and Citigroup.
Source: https://www.cnbc.com/2025/07/18/rich-american-express-customers-spend-freely-with-one-exception.html