American Express’ first-quarter profits fell roughly 6% from a year earlier, but the company saw a 30% jump in spending on its namesake cards in the quarter as its cardmembers returned to their habits of shopping, traveling and dining.
The New York-based company posted a profit of $2.1 billion, or $2.73 a share, down from $2.24 billion, or $2.74 a share, a year earlier. Last year’s results had a one-time boost to AmEx’s results, as the company released some of its reserves that it had set aside to cover potential losses earlier in the pandemic.
Travel and entertainment companies have been saying for months that U.S. consumers are eager to get back to traveling after the two-year coronavirus pandemic, and gauging from American Express’ results, this appears to be true. Cardmembers spent $350 billion on their AmEx cards in the quarter, up 30% from a year earlier. The average AmEx card holder spent nearly $6,000 on their accounts last quarter, up 27% from a year earlier.
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