American Express grew global
corporate travel sales nearly 28 percent to $4.6 billion during the second
quarter from the same period in 2009, representing growth in transactions and
strengthening of airline pricing.
Corporate travel sales outpaced the company's
overall travel sales, which grew by a slightly more modest 25 percent during
the second quarter, totaling $5.7 billion, from $4.5 billion in the second
quarter of 2009.
"Travel is benefiting
from a growth in transactions as well as higher fares from airlines," said
American Express executive vice president and CFO Dan Henry during an investor
presentation on Thursday.
Billed business for
the commercial card segment grew 21 percent to $32.9 billion, on a 3 percent decline in cards in
force. Average cardholder spending grew 26 percent to $4,712 during the
quarter.
Global Commercial
Services, the American Express division that houses both the travel management company
and the commercial card business, reported net income of $117 million for the
quarter, compared with the $67 million it reported 2009's second quarter. The
division reported revenues increased 9 percent, "reflecting increased
spending by corporate card members and higher travel commissions and
fees."
The company reported $1
billion in net income for the quarter.