The company reported that travel and entertainment spending for U.S. Express commercial customers lowered its growth rate in the second quarter, although total spending in the sector maintained a steady growth rate.
T&E spending for AMEX commercial customers increased by 1% year-on-year in the second quarter, while 2% year-on-year in the first quarter. Business customers spending on goods and services increased 3% year-on-year over the quarter and total spending increased 2% as in the first quarter, although the quarter was varied by about one percentage point due to the additional day of the 2024 LEAP year.
American Express CFO Christophe Le Caillec said in a revenue call that slower T&E growth was “driven by softer airline and accommodation spending, while restaurant spending was still very strong, up 8%.
Spending on large and global corporate clients, including T&E and goods and services, rose 4% year-on-year in the second quarter. According to Amex, spending for small and medium-sized customers increased by 2%.
Total spending for AMEX commercial customers outside the United States, including T&E and goods and services, increased 12% year-on-year in the second quarter. Total international T&E spending, including consumers and commercial customers, increased by 8% year-on-year.
American Express reported total revenue in the second quarter was $17.9 billion, up 9% year-on-year. Net income for the quarter was $2.9 billion, down slightly from $3 billion in the second quarter of 2024. American Express’s consolidated expenses rose 14% year-on-year in the second quarter.
