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American Express Tightens Its Belt
FlyerTalk April 24, 2020
Airlines aren’t the only ones in trouble during the coronavirus. American Express announced on Friday that it will be cutting spending by nearly $3 billion in 2020 to brace itself against a wave of predicted delinquencies, and to counteract a nearly 76% dip in quarterly profits due to reduced spending.
“In light of the current environment, we are aggressively reducing costs across the enterprise,” said AmEx Chief Executive Officer Stephen Squeri. Analysts predict that operating expenses will be down around $1 billion year over year for the next three quarters. As of now, no one is sure when spending will return to pre-coronavirus levels, especially for business travel which is a large chunk of AmEx’s billed business.
They increased the membership fee for Centurion Card to a DOUBLED $5,000 per year PER PERSON- so a husband and wife have to pay $10,000 a year for the "privilege". I don't see any international travel for the next 2 years. They dropped the companion fare "befefit" ages ago. I saw NO benefits that mattered that I don't already have with another card. After 21 years as a Black Card holder (back when it meant something), I said goodbye yesterday. I have been an AmEx member since 1987 and I thought it was really crappy of them to just double the membership fee. I might have stayed for a $1000 increase to me- the main card holder- but to add an extra $5,000 on to a year of spending in THESE TIMES, no way! I am happy with "other" card at this point. AmEx was my go-to, but I feel they let me down. I choose to be wise with my spending and a $1000 gift card from Saks (what's that, one shoe?) just does not make me want to stay for double the fee's. Let the male CEO's keep them. Just curious, Centurion, how many women card holders will you lose because of this new policy? Check your stats.
They increased the membership fee for Centurion Card to a DOUBLED $5,000 per year PER PERSON- so a husband and wife have to pay $10,000 a year for the "privilege". I don't see any international travel for the next 2 years. They dropped the companion fare "gift" ages ago anyway. I saw NO benefit. After 21 years as a Black Card holder I said goodbye yesterday. I have been a member since 1987 and I thought it was really crappy of them to just double the membership. I might have stayed for a $1000 increase to me- the main card holder but to add and extra $5,000 on to a year of spending in THESE TIMES, no way. I
I’ve stopped literally the use of my previously “go-to” AMEX CC’s for daily use Delta Gold and EveryDay cards (since they drastically cut down the benefits, starting this year) and all on “$0 balances” (I pay off balances monthly..). AMEX got nothing on me.
Here come the dreaded financial reviews and lowering of spending limits that happened in 2008...