Core Insights - American Express has maintained a strong focus on affluent customers, benefiting from their appreciation for travel and dining perks, which has helped the company remain resilient amid concerns of a spending slowdown [1] - Total spending on Amex cards increased by 7% in the second quarter, matching the first quarter and surpassing the 6% increase from the previous year [1] Spending Trends - Travel spending showed weakness compared to goods and services transactions, particularly due to stagnant airline spending, which remained flat year-over-year [2] - The decline in economy class domestic airfare, which fell by 3.5% in June compared to the previous year, indicates that consumers are spending less on tickets despite overall inflation rising [3] Financial Performance - American Express reported second-quarter profit and revenue that exceeded expectations and reaffirmed its 2025 guidance for these metrics [3] - Despite positive financial results, shares of American Express fell by 2.7% during midday trading, with year-to-date share growth at less than 4%, lagging behind other financial institutions like JPMorgan Chase and Citigroup [3] Competitive Landscape - Increased competition in the premium card market from companies such as JPMorgan, Capital One, and Citigroup poses challenges for American Express, particularly as it launches a refreshed Platinum card [4] - Concerns have been raised regarding the company's spending on rewards programs, as it may need to invest more heavily to achieve growth [4]