For a company so closely tied to the business travel elite, the Covid lockdown orders issued in March 2020 were particularly troubling for American Express. With shops shut, borders closed and its cohort of jetsetting business customers suddenly chained to their kitchen tables, the credit card company was hit with an immediate drop in consumer spending.
Compounded by the $1.7bn (£1.4bn) put aside by the end of March to cover potential defaults – by Amex customers financially squeezed by illness, layoffs, or new caring responsibilities – the pandemic quickly took its toll. Profits plunged 76% to just $367m in the first three months of the year, and took another 85% year-on-year tumble in the second quarter.
