Rich American Express customers continue to spend freely, with one exception
That has helped insulate the company from concerns over a spending slowdown. In the second quarter, total spending on Amex cards jumped 7%, matching the first quarter and higher than the 6% increase a year ago.
But travel spending in the quarter was weaker than transactions for goods and services, and that's specifically because airline spending has stalled out, coming in flat from a year ago, American Express said Friday.
Economy class domestic airfare is the source of the weakness, Amex CFO Christophe Le Caillec told CNBC.
That could be of concern given the company's airline partnerships and network of airport lounges, Truist analyst Brian Foran noted.
Airfare prices have also declined, which means consumers are spending less when they buy tickets. Airfare fell 3.5% in June from a year earlier while inflation overall rose, according to the Bureau of Labor Statistics.
Despite beating expectations for second-quarter profit and revenue, and reaffirming its 2025 guidance for those metrics, shares of Amex fell 2.7% in midday trading. Year to date, the company's shares have climbed less than 4%, trailing most other financials like JPMorgan Chase and Citigroup.
That's mostly over investor concerns about the spending on rewards programs that Amex has to do as it launches a refreshed Platinum card, Foran said. The company faces increased competition in the premium card space from JPMorgan, Capital One and Citigroup, he said.
"The bear narrative is they have to push harder and harder to get growth, spending more to get more," Foran said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 hours ago
- Yahoo
Why Is Wall Street Obsessed With AI (Artificial Intelligence) Leader Arista Networks?
Key Points Arista Networks is a leading network platform provider. Several Wall Street analysts hiked their price targets on Arista Networks stock in July. Those on Main Street should investigate the company for themselves to see if it aligns with their investing goals. 10 stocks we like better than Arista Networks › We all have preferences. From our favorite movies to favorite places to eat to favorite places to visit, people love what they love. Wall Street is no different. Currently, analysts can't get enough of artificial intelligence (AI) stocks. But of all the AI stocks on the Street's radar, Arista Networks (NYSE: ANET) is one AI name that analysts absolutely love. Let's take a look at the basis for this affection for one of the leading network platform providers. Enthusiasm for Arista Networks has heated up in July While Arista Networks' stock received some upgrades in June, it's during July that Wall Street's enthusiasm has been clearly seen. Here are some of the analysts' more recent actions. JPMorgan boosted its price target to $130 from $117 on July 17. Citigroup hiked its price target to $123 from $112 on July 11. Wolfe Research initiated coverage on Arista Networks and assigned an outperform rating on July 7. According to JPMorgan predicated its new price target on the expectation that cloud spending will be strong in the second half of 2025, while Citigroup based its new price target on a growing Ethernet switching market. Besides Wall Street, Arista Networks is growing increasingly popular with customers. The company's industry-leading switches are in high demand as data centers look to shore up their computing infrastructure to support AI computing. And demand for the company's networking solutions seems unlikely to taper off anytime soon. During its first-quarter 2025 financial report, Arista Networks projected its total addressable market will rise from $41 billion in 2024 to $70 billion in 2028. Is now a good time for Main Street investors to listen to Wall Street? The enthusiasm that Wall Street has for Arista Networks is well warranted, but does that mean investors should rush to buy shares? The answer is a resounding No. Investors must -- as always -- do their own due diligence to see if Arista Networks is right for them, but for AI exposure, it certainly demands consideration. Do the experts think Arista Networks is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Arista Networks make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks and JPMorgan Chase. The Motley Fool has a disclosure policy. Why Is Wall Street Obsessed With AI (Artificial Intelligence) Leader Arista Networks? was originally published by The Motley Fool
CNN
7 hours ago
- CNN
How I flew Air France business class for just 60,000 miles
CNN Underscored reviews financial products based on their overall value. We may receive a commission through our affiliate partners if you apply and are approved for a product, but our reporting is always independent and objective. This may impact how links appear on this site. This site does not include all financial companies or all available financial offers. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit to learn more. Flying between Europe and the US in the summer often comes with a hefty price tag. But with a bit of planning and the right travel rewards strategy, you can score a lie-flat business-class seat for a fraction of the usual cost. This summer, I flew one-way from Paris Charles de Gaulle (CDG) to Washington Dulles (IAD) in Air France business class for just 60,000 American Express Membership Rewards points. Importantly, I did not use the American Express travel portal to book the ticket but transferred points to Flying Blue, the joint loyalty program of Air France and KLM. Here's how I pulled it off — and how you might be able to do the same. Flying Blue is a valuable program to book airfare with miles to or from the US. It uses dynamic pricing, meaning that award rates fluctuate, but sometimes offers advantageous transatlantic prices. You can fly one-way between North America and Europe starting at 25,000, 40,000 and 60,000 miles in economy, premium economy and business class, respectively. It's also a transfer partner of American Express Membership Rewards®, Bilt Rewards, Capital One, Chase Ultimate Rewards®, Citi ThankYou Rewards, Marriott Bonvoy and Wells Fargo Rewards. That means you can transfer points from any of those programs to Flying Blue; you don't have to be a frequent flyer with Air France or KLM, or based in Europe, in order to earn miles in Flying Blue. In addition to that, the program often has transfer bonuses, meaning you can get more miles if you transfer to it from a credit card rewards program. For instance, a 20% bonus would mean that 50,000 points become 60,000 Flying Blue miles. Even without a transfer bonus, that one-way business-class flight from Paris to Washington for just 60,000 Flying Blue miles was a bargain. That's far cheaper than the 88,000 to 120,000 miles you might pay through other programs. I did have to pay taxes and fees that came to about $500, but that was still a fraction of the price of business class on a transatlantic flight. A round-trip fare between Paris and Washington is currently around $4,000, and a one-way is even more expensive, at $5,000. A post shared by Kyle Olsen (@kyleolsen10) The welcome bonus alone from some credit cards would be enough to book an award flight like this one. I've transferred Amex points and Capital One miles to Flying Blue, and here are a few standout cards from both issuers currently offering welcome bonuses that can get you all the way to 60,000 points and then some. American Express® Gold Card: Earn as high as 100,000 Membership Rewards® Points after you use your new card to make $6,000 in purchases in the first 6 months after opening the account. The welcome offer varies, and you may not be eligible for an offer; you'll need to apply first to find out your exact welcome offer amount (with no credit score impact; however, if you're approved and choose to accept the card offer, your score may be impacted). The Platinum Card® from American Express: Earn as high as 175,000 Membership Rewards® Points after you use your new card to make $8,000 in purchases in the first 6 months after opening the account. The welcome offer varies and you may not be eligible for an offer; you'll need to apply first to find out your exact welcome offer amount (with no credit score impact; however, if you're approved and choose to accept the card offer, your score may be impacted). American Express® Business Gold Card: Earn 100,000 Membership Rewards® points after you spend $15,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership. The Business Platinum Card® from American Express: Earn 150,000 Membership Rewards® points after you spend $20,000 on eligible purchases on your Business Platinum Card® within the first 3 months of Card Membership. Capital One Venture X Rewards Credit Card: 75,000 bonus miles once you spend $4,000 on purchases within 3 months of account opening. Capital One Venture Rewards Credit Card: 75,000 bonus miles once you spend $4,000 on purchases within 3 months of account opening. After searching on the Air France website, I located a nonstop Paris CDG to Washington IAD flight on my desired date for 60,000 miles in business class. I then transferred 60,000 Amex Membership Rewards points to my Flying Blue account. The transfer was nearly instant. It's very important to make sure an award seat, at the number of miles you want, is available before transferring points. That's because transfers are not reversible. To be clear, here's what the process looked like: I searched for award availability on and ensured a seat was available at 60,000 miles. I transferred 60,000 Amex points to Flying Blue. Within minutes, the miles posted, and I booked the flight. The fare I booked included two checked bags, access to the Air France business-class lounge at CDG, lie-flat seating, priority boarding, a multicourse French meal and champagne on board. The flight from Paris to Washington, D.C. was operated by a Boeing 777-300ER featuring a 1-2-1 reverse herringbone configuration in business class. This layout gives every passenger direct aisle access and a greater amount of privacy. While this wasn't Air France's newest business-class cabin — you'll find a more recent version on the Airbus A350 and on some 777s — the experience still felt elevated. Besides converting into a fully lie-flat bed, my seat included a plush duvet and pillow. The service, food and beverages stood out as well. From the moment I boarded, the crew was gracious and attentive. I was welcomed with a chilled glass of champagne served in real glassware, followed by a personalized introduction from the flight attendant. Lunch was a highlight too: a multicourse, French-inspired meal that included an amuse-bouche, starter, salad, main course, cheese selection, dessert and warm bread, all paired with a curated selection of French wines. The menu was printed and presented elegantly, and each course was served on fine china with stainless steel cutlery. An amenity kit stocked with Clarins skin care products, a sleep mask and other in-flight essentials was provided after takeoff. Headphones, a large entertainment screen and ample storage rounded out the seat experience. By the time we touched down in Washington, D.C., I felt genuinely rested and refreshed, something I rarely say after a long-haul flight. Even though I didn't use a transfer bonus in this case, Amex and Capital One frequently offer transfer bonuses to Flying Blue, sometimes at up to 25%. That would have lowered your cost in points even more. Regardless of bonus, here are the steps to follow to prep for your own redemption: Sign up for a Flying Blue account. Monitor Flying Blue's monthly Promo Rewards page, which often offers points deals to/from North America. Search for flights to/from your desired destinations, including the vast Air France and KLM network in Europe, which goes well beyond the Paris and Amsterdam hubs. Often, you'll find deals even outside Flying Blue promotions. Remember to confirm award space before transferring points, since transfers from credit card programs like Amex to Flying Blue are instant and can't be reversed. Flying business class across the Atlantic for just 60,000 Amex points and around $500 in taxes was one of the best redemptions I've made all year. There's something especially satisfying about using your points for a lie-flat experience, complete with wine, cheese and lounge access. If you keep an eye on Flying Blue Promo Rewards and transfer bonuses, you might just find yourself sipping champagne at 35,000 feet for even less than the 60,000 points I used. The following FAQs have been answered by CNN Underscored travel editor and credit card expert Kyle Olsen. How much are 60,000 Flying Blue miles worth? How much are 60,000 Flying Blue miles worth? While redemption rates vary, The Points Guy values 60,000 Flying Blue miles at $780. Which credit card points transfer to Flying Blue miles? Which credit card points transfer to Flying Blue miles? You can transfer points from the following points currencies to Flying Blue at a 1:1 ratio: American Express Membership Rewards Bilt Rewards Capital One Miles Chase Ultimate Rewards Citi ThankYou Rewards Wells Fargo Rewards What airlines can I use Capital One miles on? What airlines can I use Capital One miles on? You can use Capital One miles in the Capital One travel portal on most major airlines or transfer Capital One miles to 18 airline programs — mostly at a 1:1 ratio — to book award flights with major alliances. Aeromexico, Air France-KLM, Virgin Red: 1:1 (SkyTeam) Air Canada, Avianca, Singapore Airlines, TAP Air Portugal, Turkish Airlines, EVA Air: mostly 1:1 (Star Alliance) British Airways, Cathay Pacific, Finnair, Qantas: 1:1 (Oneworld) Emirates, Etihad, JetBlue: varies, not in alliances CNN Underscored's travel and credit card coverage is built on firsthand experience. This guide was written by travel editor Kyle Olsen, who used these exact strategies to book a real flight. From Paris to DC, this redemption proves that with the right tools and timing, luxury travel is within reach. Click here for rates and fees of the American Express Gold card. Click here for rates and fees of the American Express Platinum card. Click here for rates and fees of the American Express Business Gold card. Click here for rates and fees of the American Express Business Platinum card. Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
CNN
7 hours ago
- CNN
How I flew Air France business class for just 60,000 miles
CNN Underscored reviews financial products based on their overall value. We may receive a commission through our affiliate partners if you apply and are approved for a product, but our reporting is always independent and objective. This may impact how links appear on this site. This site does not include all financial companies or all available financial offers. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit to learn more. Flying between Europe and the US in the summer often comes with a hefty price tag. But with a bit of planning and the right travel rewards strategy, you can score a lie-flat business-class seat for a fraction of the usual cost. This summer, I flew one-way from Paris Charles de Gaulle (CDG) to Washington Dulles (IAD) in Air France business class for just 60,000 American Express Membership Rewards points. Importantly, I did not use the American Express travel portal to book the ticket but transferred points to Flying Blue, the joint loyalty program of Air France and KLM. Here's how I pulled it off — and how you might be able to do the same. Flying Blue is a valuable program to book airfare with miles to or from the US. It uses dynamic pricing, meaning that award rates fluctuate, but sometimes offers advantageous transatlantic prices. You can fly one-way between North America and Europe starting at 25,000, 40,000 and 60,000 miles in economy, premium economy and business class, respectively. It's also a transfer partner of American Express Membership Rewards®, Bilt Rewards, Capital One, Chase Ultimate Rewards®, Citi ThankYou Rewards, Marriott Bonvoy and Wells Fargo Rewards. That means you can transfer points from any of those programs to Flying Blue; you don't have to be a frequent flyer with Air France or KLM, or based in Europe, in order to earn miles in Flying Blue. In addition to that, the program often has transfer bonuses, meaning you can get more miles if you transfer to it from a credit card rewards program. For instance, a 20% bonus would mean that 50,000 points become 60,000 Flying Blue miles. Even without a transfer bonus, that one-way business-class flight from Paris to Washington for just 60,000 Flying Blue miles was a bargain. That's far cheaper than the 88,000 to 120,000 miles you might pay through other programs. I did have to pay taxes and fees that came to about $500, but that was still a fraction of the price of business class on a transatlantic flight. A round-trip fare between Paris and Washington is currently around $4,000, and a one-way is even more expensive, at $5,000. A post shared by Kyle Olsen (@kyleolsen10) The welcome bonus alone from some credit cards would be enough to book an award flight like this one. I've transferred Amex points and Capital One miles to Flying Blue, and here are a few standout cards from both issuers currently offering welcome bonuses that can get you all the way to 60,000 points and then some. American Express® Gold Card: Earn as high as 100,000 Membership Rewards® Points after you use your new card to make $6,000 in purchases in the first 6 months after opening the account. The welcome offer varies, and you may not be eligible for an offer; you'll need to apply first to find out your exact welcome offer amount (with no credit score impact; however, if you're approved and choose to accept the card offer, your score may be impacted). The Platinum Card® from American Express: Earn as high as 175,000 Membership Rewards® Points after you use your new card to make $8,000 in purchases in the first 6 months after opening the account. The welcome offer varies and you may not be eligible for an offer; you'll need to apply first to find out your exact welcome offer amount (with no credit score impact; however, if you're approved and choose to accept the card offer, your score may be impacted). American Express® Business Gold Card: Earn 100,000 Membership Rewards® points after you spend $15,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership. The Business Platinum Card® from American Express: Earn 150,000 Membership Rewards® points after you spend $20,000 on eligible purchases on your Business Platinum Card® within the first 3 months of Card Membership. Capital One Venture X Rewards Credit Card: 75,000 bonus miles once you spend $4,000 on purchases within 3 months of account opening. Capital One Venture Rewards Credit Card: 75,000 bonus miles once you spend $4,000 on purchases within 3 months of account opening. After searching on the Air France website, I located a nonstop Paris CDG to Washington IAD flight on my desired date for 60,000 miles in business class. I then transferred 60,000 Amex Membership Rewards points to my Flying Blue account. The transfer was nearly instant. It's very important to make sure an award seat, at the number of miles you want, is available before transferring points. That's because transfers are not reversible. To be clear, here's what the process looked like: I searched for award availability on and ensured a seat was available at 60,000 miles. I transferred 60,000 Amex points to Flying Blue. Within minutes, the miles posted, and I booked the flight. The fare I booked included two checked bags, access to the Air France business-class lounge at CDG, lie-flat seating, priority boarding, a multicourse French meal and champagne on board. The flight from Paris to Washington, D.C. was operated by a Boeing 777-300ER featuring a 1-2-1 reverse herringbone configuration in business class. This layout gives every passenger direct aisle access and a greater amount of privacy. While this wasn't Air France's newest business-class cabin — you'll find a more recent version on the Airbus A350 and on some 777s — the experience still felt elevated. Besides converting into a fully lie-flat bed, my seat included a plush duvet and pillow. The service, food and beverages stood out as well. From the moment I boarded, the crew was gracious and attentive. I was welcomed with a chilled glass of champagne served in real glassware, followed by a personalized introduction from the flight attendant. Lunch was a highlight too: a multicourse, French-inspired meal that included an amuse-bouche, starter, salad, main course, cheese selection, dessert and warm bread, all paired with a curated selection of French wines. The menu was printed and presented elegantly, and each course was served on fine china with stainless steel cutlery. An amenity kit stocked with Clarins skin care products, a sleep mask and other in-flight essentials was provided after takeoff. Headphones, a large entertainment screen and ample storage rounded out the seat experience. By the time we touched down in Washington, D.C., I felt genuinely rested and refreshed, something I rarely say after a long-haul flight. Even though I didn't use a transfer bonus in this case, Amex and Capital One frequently offer transfer bonuses to Flying Blue, sometimes at up to 25%. That would have lowered your cost in points even more. Regardless of bonus, here are the steps to follow to prep for your own redemption: Sign up for a Flying Blue account. Monitor Flying Blue's monthly Promo Rewards page, which often offers points deals to/from North America. Search for flights to/from your desired destinations, including the vast Air France and KLM network in Europe, which goes well beyond the Paris and Amsterdam hubs. Often, you'll find deals even outside Flying Blue promotions. Remember to confirm award space before transferring points, since transfers from credit card programs like Amex to Flying Blue are instant and can't be reversed. Flying business class across the Atlantic for just 60,000 Amex points and around $500 in taxes was one of the best redemptions I've made all year. There's something especially satisfying about using your points for a lie-flat experience, complete with wine, cheese and lounge access. If you keep an eye on Flying Blue Promo Rewards and transfer bonuses, you might just find yourself sipping champagne at 35,000 feet for even less than the 60,000 points I used. The following FAQs have been answered by CNN Underscored travel editor and credit card expert Kyle Olsen. How much are 60,000 Flying Blue miles worth? How much are 60,000 Flying Blue miles worth? While redemption rates vary, The Points Guy values 60,000 Flying Blue miles at $780. Which credit card points transfer to Flying Blue miles? Which credit card points transfer to Flying Blue miles? You can transfer points from the following points currencies to Flying Blue at a 1:1 ratio: American Express Membership Rewards Bilt Rewards Capital One Miles Chase Ultimate Rewards Citi ThankYou Rewards Wells Fargo Rewards What airlines can I use Capital One miles on? What airlines can I use Capital One miles on? You can use Capital One miles in the Capital One travel portal on most major airlines or transfer Capital One miles to 18 airline programs — mostly at a 1:1 ratio — to book award flights with major alliances. Aeromexico, Air France-KLM, Virgin Red: 1:1 (SkyTeam) Air Canada, Avianca, Singapore Airlines, TAP Air Portugal, Turkish Airlines, EVA Air: mostly 1:1 (Star Alliance) British Airways, Cathay Pacific, Finnair, Qantas: 1:1 (Oneworld) Emirates, Etihad, JetBlue: varies, not in alliances CNN Underscored's travel and credit card coverage is built on firsthand experience. This guide was written by travel editor Kyle Olsen, who used these exact strategies to book a real flight. From Paris to DC, this redemption proves that with the right tools and timing, luxury travel is within reach. Click here for rates and fees of the American Express Gold card. Click here for rates and fees of the American Express Platinum card. Click here for rates and fees of the American Express Business Gold card. Click here for rates and fees of the American Express Business Platinum card. Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
