AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said

Business Insider

6 days ago

American Express execs were asked about Platinum card fees and crowded lounges on an earnings call.
The current annual fee is $695, which is still less than that of the Chase Sapphire Reserve card.
Executives also said they expect "more innovation" in airport lounges and acknowledged crowding issues.
Few details have come out about the coming updated American Express Platinum Card — including how much it will cost, as the world of premium credit cards gets ever glitzier.
The company's CEO and chief financial officer were asked about card fee growth on a second-quarter earnings call on July 18.
"Given the previous conversations that we had about the timing of the platinum fee increase, it's only sometime in the new year, in 2026, that you should see that inflection point and a bit more acceleration," CFO Christophe Le Caillec said on the call. He added that card fee growth rates will likely "moderate" within the balance of this year. A representative for American Express declined to comment.
Currently, the Amex Platinum Card has an annual fee of $695, which is less than the $795 yearly fee for the Chase Sapphire Reserve credit card. Amex promised an update on the Platinum card later this year and said more details would come in the fall. Some have speculated that the fee on the revamped Platinum card could reach $1,000.
"Anybody who thinks that we're refreshing the product in response to what our competitors are doing is crazy," CEO Stephen Squeri said on the call. "We have our own schedule."
Current cardholders get a range of perks, including access to certain airport lounges and other travel credits. As those lounges continue to boom in popularity, Amex executives were also asked about overcrowding concerns and competition from airlines and other credit cards.
"We're trying to make the lounges bigger," Squeri said on the call. "I think this whole lounge game has been a boom for airport authorities in terms of how many lounges they can put in." He mentioned a new, smaller "sidecar" lounge in Las Vegas, where cardholders can pop in for a quick drink, and said Amex works closely with its partner Delta to try and deal with the crowds.
"I think you'll continue to see more innovation here," Squeri added. "You'll look at more expansion of existing lounges where we can get space. And you'll look at a strategy that looks at satellite locations so that, you know, we can handle the demand that we get."
The company's second-quarter revenue minus interest expense was $17.9 billion, rising 9% year-over-year, according to a press release. The growth was driven in part by increased spending and "continued strong card fee growth," Amex said in the release. Amex's stock was down more than 2.3% by the time the market closed.
Squeri emphasized the company's focus on premium users in the press release, saying demand is strong and teasing the coming Platinum "refresh."
The question of exactly how much that "refresh" will cost, though, remains to be answered.