Latest news with #Platinum
Business Insider
2 days ago
- Business
- Business Insider
AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said
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." Hementioned 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.
Business Insider
2 days ago
- Business
- Business Insider
AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said
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.
CNBC
2 days ago
- Business
- CNBC
Rich American Express customers continue to spend freely, with one exception
American Express has long benefited from a focus on wealthier customers who appreciate the credit card company's travel and dining perks. 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.
RTÉ News
2 days ago
- Business
- RTÉ News
American Express exceeds profit expectations on robust spending
American Express surpassed estimates for second-quarter profit today, fueled by resilient spending from its affluent cardholders. The beat underscores how the credit card giant's focus on wealthy customers has helped insulate it from the effects of waning consumer confidence, which is more pronounced among lower-income households. While not representative of the broader economy, AmEx's numbers offer valuable insight into evolving trends around travel and discretionary spending, especially among the most creditworthy borrowers. Big banks said earlier this week that consumers remain in good financial shape despite high borrowing costs, trade policy uncertainty and a job market where companies are increasingly cautious about hiring. Excluding one-time items, AmEx earned $4.08 per share for the three months ended June 30, compared with the $3.89 per share analysts were expecting, according to estimates compiled by LSEG. Total revenue rose 9% to $17.9 billion, also above the $17.7 billion analysts were expecting. Still, the New York-based company boosted its provisions for credit losses to $1.4 billion from $1.3 billion a year earlier. Competition in the high-end credit card space is heating up. Citigroup said this week it will launch a new premium credit card, Citi Strata Elite, later this quarter to boost its appeal among affluent customers. AmEx has also said it will roll out updates to its Platinum cards later this year for both consumers and businesses in the US, making its "largest investment ever in a card refresh".
Zawya
3 days ago
- Business
- Zawya
Gold heads for weekly dip, platinum hits highest in more than a decade
Gold traded flat on Friday and was headed for a weekly fall, weighed down by an overall stronger dollar and solid U.S. economic data, while platinum scaled its highest level since August 2014. Spot gold was unchanged at $3,337.59 per ounce, as of 0156 GMT. U.S. gold futures eased 0.1% to $3,343.20. Bullion has declined 0.5% so far this week. The dollar edged 0.1% lower against its rivals on Friday, but was headed for a second straight weekly gain. A stronger dollar makes greenback-priced bullion more expensive for other currency holders. "We are starting to see data coming in that is still supporting a rather vigilant U.S. economy and potentially market participants are still looking at a situation where we are not expecting a very dovish Fed," OANDA senior market analyst Kelvin Wong said. Data showed on Thursday that U.S. retail sales rose more than expected in June, advancing 0.6% last month after an unrevised 0.9% drop in May. U.S. initial jobless claims were better than expected, dropping 7,000 to a seasonally adjusted 221,000 for the week ended July 12. Economists polled by Reuters had forecast 235,000 claims for the week. The strong data showed the world's largest economy remained on a stable footing, supporting the Federal Reserve's hesitance to resume monetary policy easing. However, Fed Governor Christopher Waller said he continues to believe the U.S. central bank should cut interest rates at the end of this month amid mounting risks to the economy. Gold, often considered a safe haven during times of economic uncertainty, tends to do well in a low-interest-rate environment. Meanwhile, investors closely watched trade negotiations as U.S. President Donald Trump broadened his tariff war. Elsewhere, spot platinum rose 1% to $1,472.20 per ounce, its highest since August 2014, while palladium climbed 1.4% to $1,297.78, its highest since August 2023. Silver was flat at $38.12. (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
