Executives on earnings call see “more uncertain economic environment”

American Express Global Business Travel (Amex GBT) lowered guidance for revenue and earnings for 2025 because of a “more uncertain economic environment,” according to executives on a first quarter earnings call. Paul Abbott, CEO, cited a “weaker but stable environment,” but added that the TMC has not yet seen significant adjustments to travel budgets or policies among most customers.

The company now forecasts that its 2025 revenue will be between 2% below and 2% above last year’s levels. First quarter total transactions rose 3% year over year to $8.3 billion, and revenue increased 2% year over year to $621 million. Transaction growth among global multinational customers was up 6% in the quarter over 2024, while small and midsize customers’ transactions were up 2%.

Karen Williams, CFO, said transaction growth for March and April — grouped together to account for different Easter dates in 2024 and 2025 — is trending flat. She said that is about 5 percentage points lower versus expectations coming into the year but, she said, “we are not seeing any further signs of deterioration.”

Abbott said only 6% of the company’s top 100 global multinationals had put new budget restrictions in place since the April 2 announcement by the administration of increased tariffs.

Meeting and event trends, said Abbott, are showing stability. Amex GBT reported a 2% year-over-year increase in the number of meetings for the year so far and an 8% increase in spending on meetings and events. The cancellation rate is flat with last year, he said.

The company reported a net income of $75 million for the first quarter, compared with a loss of $19 million in the first quarter of 2024.