American Express has long benefited from a focus on wealthier customers who appreciate the credit card company’s travel and dining perks.

That has helped insulate the company from concerns over a spending slowdown. In the second quarter, total spending on Amex cards jumped 7%, matching the first quarter and higher than the 6% increase a year ago.

But travel spending in the quarter was weaker than transactions for goods and services, and that’s specifically because airline spending has stalled out, coming in flat from a year ago, American Express said Friday.

Economy class domestic airfare is the source of the weakness, Amex CFO Christophe Le Caillec told CNBC. American Express said spending on premium cabins was up 10% from the previous year and that hotel bookings that cost more than $5,000 were up 9%.

But the weak spot could be of concern given the company’s airline partnerships and network of airport lounges, Truist analyst Brian Foran noted.

Airfare prices have also declined, which means consumers are spending less when they buy tickets. Airfare fell 3.5% in June from a year earlier while inflation overall rose, according to the Bureau of Labor Statistics.

Despite beating expectations for second-quarter profit and revenue, and reaffirming its 2025 guidance for those metrics, shares of Amex fell 2.5% in midday trading. Year to date, the company’s shares have climbed less than 4%, trailing most other financials like JPMorgan Chase and Citigroup.

That’s mostly over investor concerns about the spending on rewards programs that Amex has to do as it launches a refreshed Platinum card, Foran said. The company faces increased competition in the premium card space from JPMorgan, Capital One and Citigroup, he said.

“The bear narrative is they have to push harder and harder to get growth, spending more to get more,” Foran said.

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