Travel Division Earns Record Profits For Amex

American Express late yesterday announced record earnings of $550 million for the fourth quarter of 2002 in its Travel Related Services division, up substantially over 4Q01, which was depressed following the effects of Sept. 11.

Travel sales rose 16 percent in 4Q02--partly boosted in the United States by 12 percent higher small-business spending and 13 percent higher corporate spending--driving net revenue higher by 8.3 percent and a 10.5 percent increase in travel commissions and fees.

While TRS spent 31 percent more, year over year, on marketing and promotion during the quarter, overall expenses fell 5 percent as the cost of labor fell for the sixth consecutive quarter. The TRS employee base was down 8,400, or 12 percent, versus the fourth quarter of 2001. "TRS seems reasonably well-positioned for good growth as we enter 2003, although environmental risk clearly does exist," officials said.