Amex reports softer Q2 lodging spend by commercial customers

Airline and lodging spend slows, while international and restaurant categories show strengt

In its Q2 earnings report, American Express revealed that travel and entertainment (T&E) spending growth among commercial customers has begun to cool, with lodging and airline expenses notably softening. While total commercial spend held steady with a 2% year-over-year increase, this marks a slight deceleration in T&E from earlier in the year. Despite the slowdown, Amex saw strong gains internationally and in restaurant spending, offsetting some of the domestic drag.

Key takeaways:

• T&E spend by commercial customers rose just 1% YoY in Q2, down from 2% in Q1.
• Airline and lodging spend was softer, while restaurant spend remained robust, growing 8%.
• U.S. large/global corporate spending rose 4%, while SMB client spend grew 2%.
• International commercial spend climbed 12%, with international T&E spend (consumer + commercial) up 8%.
• Total revenue reached $17.9B (up 9% YoY), while net income dipped slightly to $2.9B.
• Consolidated expenses rose 14% year over year.

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