American Express Credit cards have long benefited by focusing on rich customers who have appreciated the company’s travel and food allowances.
This has helped the company to insulating more concerns than the recession of spending. In the second quarter, the total expenditure on the Amax card increased by 7%, matched the first quarter and increased by more than 6% a year ago.
But traveling in the quarter was weaker than transactions for goods and services, and it is especially because the airline expenses have gone out, coming in even A year ago, the American Express said on Friday.
Economy class domestic airfare is a source of weakness, Amax CFO Christof Le Calack told CNBC.
This can be a matter of concern to the company Airline participation And the airport’s lounge network, Trust analyst Brian Foren noted.
Air fare prices He has also refused, which means that consumers are spending less on purchasing tickets. Airfare fell 3.5% in June a year ago in June Overall inflationAccording to the Bureau of Labor Statistics.
Despite beating expectations for the second quarter Benefit And confirming their 2025 guidance to the revenue, and those matrix, Amax’s shares fell 2.7% in the afternoon trading. For the year, the company’s shares have climbed less than 4%, such as most other financials leave behind. JPMorgan Chase And City group,
Foren said that most of the investors are concerned about spending on prize programs that Amex has to do as it launches a fresh platinum card, Fon said. Company faces increased competition In a premium card space from JP Morgan, Capital And Citygroup, he said.
Foon said, “The story of the bear is that they will have to push more hard and hard to get development, spending more to get more,” Foren said.
