American Express For a long time it has benefited from an approach to richer customers that appreciate the trips of travel and meals of the credit card company.
That has helped isolate the company with concerns about a slowdown of expenses. In the second quarter, the total expenditure on AMEX cards increased by 7%, coinciding with the first quarter and higher than the 6% increase a year ago.
But travel spending in the quarter was weaker than transactions for goods and services, and that is specifically due to the fact that the expenditure on the airlines has stagnated, arriving in a plan for a year, said American Express on Friday.
The economic class air passage is the source of weakness, he told CNBC, CFO of Amex Christophe Le Caillec. American Express said that the spending in premium cabins increased 10% compared to the previous year and that hotels reserves that cost more than $ 5,000 increased by 9%.
But the weak point could be a reason for concern given the company's air associations and the air -air salons network, said true analyst Brian Fortan.
Aerial rates prices have also decreased, which means that consumers are spending less when they buy tickets. The air rate fell 3.5% in June of the previous year, while inflation in general increased, according to the Office of Labor Statistics.
Despite exceeding the expectations of profits and income of the second quarter, and reaffirming its 2025 guide for these metrics, the Amyx actions fell 2.5% at noon of the negotiation. To date, the company's shares have risen less than 4%, following most of the other finances such as JPMorgan Chase and Citigroup.
That is mainly about investor concerns about spending on rewards programs that Amex has to do as he launches a renewed platinum card, said Foran. The company faces greater competition in the JPMorgan premium card space, Capital one And Citigroup, he said.
“The bear's narrative is that they have to press more and more to get growth, spend more to get more,” said Forean.
