American Express' latest earnings show corporate travelers are still opening their wallets, but a little more cautiously. In the quarter ended June 30, 2025, travel and entertainment spending on Amex commercial cards crept up 1 percent year over year, half the pace logged in the first quarter. Softer airline and lodging sales were partly offset by robust restaurant charges, and overall commercial spending on goods and services rose 3 percent. The mixed results highlight shifting traveler behavior just as suppliers head into peak planning for 2026 corporate contracts.
Key Points
- Why it matters: Slower growth in airline and Hotel charges may temper supplier pricing power.
- Commercial T&E up 1 percent; restaurants up 8 percent.
- U.S. large and global firms raised spend 4 percent; small and midsized firms 2 percent.
- International business spend jumped 12 percent, signaling continued cross-border recovery.
Snapshot
American Express issues nearly half of all U.S. corporate cards, so its quarterly data serve as an early barometer for managed-travel demand. T&E purchases cover air, lodging, Car Rental, rideshare, restaurants, and entertainment, while "goods and services" span office supplies, tech, and other non-travel categories. Amex aggregates both buckets to gauge total commercial outlays, a figure that held steady at 2 percent annual growth despite the leap-year skew that boosted first-quarter comparisons.
Background
Since borders reopened in 2022, Corporate Travel outlays on Amex cards have risen every quarter, though the cadence has slowed from double-digit rebounds to low-single-digit gains. Airline spend rebounded first, driven by pent-up demand and higher fares. Hotels followed as meeting volume returned. By late 2024, restaurant and premium-class tickets became the standout categories, reflecting travelers' preference for comfort and client-facing dining. Against that backdrop, analysts expected a mid-single-digit T&E lift in Q2 2025, making the 1 percent result a mild disappointment.
Latest Developments
American Express reported second-quarter revenue of $17.9 billion, up 9 percent, and net income of $2.9 billion. Consolidated expenses climbed 14 percent as the issuer expanded travel-related benefits and technology investments.
Soft Spot in Airline & Lodging
CFO Christophe Le Caillec told investors that airline and Hotel charges flattened versus a year ago, citing tougher comps and a modest pullback in long-haul bookings. Car Rental volumes were flat, and rideshare grew slightly, mirroring broader mobility trends.
Restaurants Remain Bright
Dining spend rose 8 percent, marking the twelfth consecutive quarter of above-trend growth. Executives attributed the resilience to client entertaining and a shift toward premium venues that meet policy caps.
Corporate Segmentation
- Large & Global Clients: Combined T&E and non-travel spend grew 4 percent, aided by manufacturing and tech sectors.
- SMBs: Small and midsized businesses lifted spend 2 percent, down from 5 percent last quarter, reflecting cautious inventory restocking.
- International Markets: Outside the United States, total business spend surged 12 percent. International T&E-including consumer cards-rose 8 percent, underscoring pent-up demand for cross-border trips.
Analysis
For airlines and hotels, the plateau in Amex ticket sales is an early signal that the post-pandemic "catch-up" phase is maturing. Carriers with heavy corporate exposure may need to lean on leisure-heavy routes or premium-economy upsells to hit yield targets. Hoteliers face similar pressure, especially in urban meeting hubs where negotiated rates reset this fall. On the upside, strong restaurant growth hints that client-facing trips are alive and well, suggesting that in-person sales calls still convert better than virtual meetings. Travel managers should prepare to defend premium cabin approvals as finance teams scrutinize policy compliance. Suppliers in global corridors will welcome the 12 percent jump in non-U.S. business spend, which could drive capacity shifts to Europe and Asia in early 2026.
Final Thoughts
American Express' data show Corporate Travel is steadier than sensational headlines suggest, but growth is rebalancing toward everyday necessities and cross-border trips rather than big-ticket itineraries. Travel managers should monitor airline advance-purchase windows and lodging lead times, while suppliers calibrate pricing to a more measured demand curve. Watching American Express travel spending each quarter remains one of the best ways to spot the next inflection point.