American Express Reports Strong Spending, But Travel Weakness Emerges

NEW YORK — American Express reported strong cardholder spending in the second quarter of 2025, driven largely by affluent customers. However, a slowdown in domestic economy-class airfare spending marked a notable weak spot in the company’s performance.

Overall spending on Amex cards rose 7% year-over-year, maintaining the same pace as the first quarter and surpassing the 6% growth recorded in the same period last year. Despite economic uncertainty, Amex's wealthier clientele continued to spend freely, especially in categories such as premium travel and luxury goods.

Spending on premium airline cabins was up 10%, while hotel bookings exceeding $5,000 rose 9%, according to Amex Chief Financial Officer Christophe Le Caillec. But overall travel spending lagged behind other categories due to flat growth in airfare.

“The weakness came from domestic economy-class airfare,” Le Caillec told CNBC. This soft spot is notable given Amex’s close airline partnerships and its global airport lounge network.

Industry analysts, including Brian Foran of Truist, noted that the dip could be linked to broader airfare trends. Airfare prices fell 3.5% in June compared to the previous year, even as inflation overall ticked up, according to the Bureau of Labor Statistics.

Despite beating Wall Street expectations on second-quarter revenue and profit, shares of Amex fell 2.5% in midday trading. Year to date, Amex stock is up just under 4%, underperforming peers like JPMorgan Chase and Citigroup.

Analysts attribute the stock pressure to concerns about rising costs in Amex’s rewards programs, particularly tied to the company’s refreshed Platinum card. The premium credit card space is seeing heightened competition from JPMorgan, Capital One, and Citi.

“The bear narrative is they have to push harder and harder to get growth, spending more to get more,” Foran said.

Despite challenges in one travel segment, American Express reaffirmed its full-year 2025 guidance, signaling continued confidence in consumer spending resilience and its premium strategy.