21-07-2025
American Express: 'Softer' airline, lodging Q2 spend by corporate customers
Travel and entertainment spending by American Express commercial customers slowed its growth rate in the second quarter, although total spending in the segment maintained a constant pace of growth, the company reported.
T&E spending by Amex commercial customers increased 1% in Q2, compared with a 2% increase in the first quarter. Commercial customer spending on goods and services was up 3% in the quarter, and total spending was up 2% -- the same rate as the first quarter, although that quarter also was skewed by about a percentage point due to the extra day in the 2024 leap year.
In its earnings call, American Express CFO Christophe Le Caillec said the slower T&E growth was "driven by softer airline and lodging spend, while restaurant spending continued to be very strong, up 8%."
Spending by U.S. large and global corporate clients, inclusive of T&E and goods and services, increased 4% year in the second quarter. Spending by small and midsized clients increased 2%, Amex reported.
Total spending, inclusive of T&E and goods and services, by Amex business clients outside of the U.S. increased 12% in the second quarter. Total international T&E spending, which includes both consumer and commercial clients, was up 8%.
This report originally appeared in Business Travel News, a sister publication to Travel Weekly.
American Express reported total revenue of $17.9 billion in the second quarter, up 9%. Net income for the quarter was $2.9 billion, down slightly from $3 billion in Q2 2024. American Express' consolidated expenses increased 14%.
