Rich American Express customers spend freely, with one exception

American Express For a long time, he has benefited from focusing on richer customers who appreciate the advantages of travel and food of the credit card company.

This helped to insulate the company from concerns about the slowing down. In the second quarter, the total expenditures on Amex cards increased by 7%, and the first quarter matched a 6% increase one year ago.

However, in the quarter, travel expenditures were weaker than the goods and service transactions, and this is due to the stopping and entering of airline expenditures straight American Express said on Friday a year ago.

Economic class home flight ticket is the source of weakness. American Express said that the expenditures on the premium cabins increased by 10% compared to the previous year and that the hotel reservations, which are more than 5,000 dollars, increased by 9%.

However, Truist Analyst Brian Forean said the company’s airline partnerships and airport halls network may be concerned about the weak point.

Aircraft information prices have also decreased, so consumers spend less when they buy tickets. According to the Bureau of Statistics, the flight ticket fell 3.5% in June compared to the previous year.

Although he defeated expectations for the second quarter profit And income and re -confirming the 2025 guidance for these metrics fell 2.5% in noon trade. Until the year, the company’s shares increased less than 4%and followed most of the other financial JPMorgan Chase And Citigroup.

Foren, this is mostly on the investor, Amex’s concerns about the expenditures made on reward programs that he has to do because he launched a renewed platinum card. The company faces increasing competition in JPMorgan’s Premium Card field, Capital one And Citigroup, dedi he said.

“The narrative of the bear is that they have to have to force growth and spend more to get more.” He said.