The Washington Post

American Express card spending rises


American Express’s quarterly card spending soared to a record as pandemic-weary travelers shrugged off rising airfare to throng airports, helping the company raise its annual revenue forecast.

The credit card giant also trounced estimates for April-toJune profit and joined major U.S. banks including Jpmorgan Chase in highlighti­ng the resilience of consumer spending in the face of an uncertain economic outlook.

Chief executive Steve Squeri, however, said loss rates would rise slowly, though they would remain well below pre-pandemic levels this year.

The company added $410 million in provisions for credit losses, mirroring similar buildups at major U.S. banks, and said it expects to set aside more funds.

“What I have seen [is] a correlatio­n between … people losing their jobs and not being able to pay their bills. And so that’s potentiall­y an issue down the road,” Squeri said.

The number of Americans enrolling for unemployme­nt benefits rose for a third straight week last week to the highest in eight months.

For now, though, Amex is benefiting from bottled-up demand and the easing of covid-19 restrictio­ns that have sparked the strongest summer travel season since March 2020.

Newspapers in English

Newspapers from United States