Despite broader economic uncertainties, American Express customers are maintaining robust spending patterns, as revealed by Chief Financial Officer Christophe Le Caillec during a recent interview with Finance Newso. The company’s affluent cardholders, particularly the younger demographic, contributed significantly to growth in transaction volumes during the first quarter.
According to the financial results disclosed on Thursday, billed business on AmEx cards experienced a 6% increase in the first quarter, or 7% when accounting for the additional day from the leap year. Le Caillec noted that this increase reflects sustained consumer spending momentum from the latter part of the previous year into 2025.
These spending trends have persisted even into April, the CFO added, despite a notable decline in stock values amidst fears surrounding President Donald Trump’s tariff policies and a potential economic downturn.
This consumer behavior has allowed American Express to surpass profit expectations for the first quarter, highlighting how its wealthier clientele may provide a buffer against tariff-induced inflationary pressures. Conversely, Synchrony Financial, which caters to various popular retailers with store cards, has issued warnings of a spending deceleration.
Le Caillec expressed optimism, stating, “There’s a lot of stability and strength, despite the news and the environment.”
The growth trajectory at American Express has predominantly been fueled by younger cardholders, particularly millennials and Gen Z members, who reported a 14% increase in spending during the quarter. In contrast, older cardholders from Gen X and Baby Boomer generations exhibited more restraint, with increases of 5% and 1%, respectively.
While Le Caillec acknowledged the complexities in assessing whether cardholders are preemptively making purchases due to anticipated tariffs—similar to comments made by JPMorgan executives—he mentioned that some small businesses might be accelerating purchases to bolster inventory given concerns about rising costs due to these tariffs.
Airline slump
One spending category instilling confidence in potential sustained trends is restaurant expenditure, according to Le Caillec.
He noted, “Restaurant spend is up 8%. This is the ultimate discretionary expense; it’s not something you can bring forward, and so it’s really a good indicator of the strength of our cardmember base and the confidence they have.”
However, not all sectors thrived, particularly in airline transactions, which showed a growth of just 3%—or 4% when adjusted for the leap year—after previously surging 13% in the fourth quarter.
While many airlines, retailers, and other corporations have revised their earnings forecasts amid tariff uncertainties, American Express has maintained a steadfast outlook. Le Caillec confirmed that the company continues to project revenue growth between 8% and 10%, along with earnings per share ranging from $15 to $15.50 for the year.
Notably, in its presentation, American Express added a new disclaimer regarding its guidance: “Subject to the Macroeconomic Environment.”
