American Express reported a 7% increase in total spending on its cards in the second quarter, driven by transactions for goods and services. However, travel spending was weaker, with airline spending flat from a year ago. Economy class domestic airfare was specifically cited as a source of weakness by the company.

Despite beating profit and revenue expectations for the second quarter, American Express shares fell 2.7% in midday trading. The company reaffirmed its 2025 guidance but faces investor concerns over spending on rewards programs as it launches a refreshed Platinum card. Competition in the premium card space from JPMorgan, Capital One, and Citigroup is also a challenge.

Read more at CNBC: Rich American Express customers spend freely, with one exception