American Express reported a first-quarter revenue increase of 11% year-on-year, driven by higher net interest income and increased Card Member spending, with EPS beating expectations. The company's FY24 outlook reiterated revenue growth of 9% – 11% and EPS of $12.65 – $13.15, despite mixed analyst opinions citing concerns about credit quality and growth deceleration. American Express stock gained 32% in the last 12 months, and investors can gain exposure to the stock via ETFs.
United Airlines is adjusting its frequent flyer program to reward customers who spend more on co-branded Chase credit cards. Starting in 2024, customers will receive 25 qualifying points for every $500 spent, compared to the current rate of 500 points for every $12,000 spent. The airline will also remove caps on credit card spending that counts towards elite status. This move comes as airlines face the challenge of maintaining exclusive yet attainable programs amidst a surge in elite frequent flyers during the pandemic. Delta Air Lines also made changes to its program but later reversed some of them due to customer complaints.
