American Express wants even more credit card high spenders
CNBC • • business
Key Points:
- American Express is shifting marketing focus toward its premium Platinum card, which has an $895 annual fee, to target affluent consumers and boost spending levels, according to CEO Stephen Squeri.
- This strategy aims to increase fee revenue from premium cards while reducing loan defaults, as high-end consumer demand for luxury products and experiences continues to grow.
- Spending on luxury retailers, business and first-class airfare, and luxury hotels surged significantly in the quarter, highlighting the strong performance driven by wealthy cardmembers.
- Despite concerns from analysts about the Platinum card refresh's traction and competition, AmEx maintains the product launch was successful, though new card account openings declined to their lowest in five quarters.
- Shares fell about 3.5% after
