American Express reported a significant increase in third-quarter profits, driven by a successful transition of most Platinum Card members to a higher-fee structure and sustained strong spending by affluent customers. The New York-based financial services company also announced plans to reduce its workforce by about 5%, or roughly 3,500 positions, marking its first major job cuts in nearly a decade.

For the quarter ending in September, American Express posted a net profit of $3.71 billion, representing a 28% rise compared to the same period last year. Earnings per share were $5.42. Adjusted for a one-time gain from the sale of its stake in Global Business Travel Group, the company reported earnings of $4.68 per share, surpassing Wall Street expectations.

Revenue growth was supported by both increased card spending and higher fees collected from cardholders. In 2025, American Express raised the annual fee on its Platinum Card from $695 to $895, while also adding new benefits for members. Despite concerns that the $200 fee increase might prompt member attrition, the company said nearly all customers who moved to the new fee structure have retained their cards. Net card fees climbed by more than $400 million compared to the previous year.

Customer spending also rose, with the average cardholder charging $6,735 during the quarter, an increase of 5% year-over-year. The company attributed some of the growth in spending to inflationary pressures. Travel and entertainment expenses were up 10%, including a 13% rise in spending on airline tickets. Additionally, cardmembers made more transactions, indicating increased card usage beyond price effects.

Chief Financial Officer Christophe Le Caillec highlighted the dual role of inflation and heightened card use in driving the higher spending levels. Meanwhile, Chief Executive Officer Steve Squeri emphasized that the forthcoming workforce reductions aim to streamline operations and improve efficiency rather than reflect a weakening business environment.

Amid rising competition from other credit card issuers like Capital One and JPMorgan Chase, which have enhanced their rewards programs, American Express has faced increased operating costs. The company’s decision to cut jobs is partly a response to these pressures, aiming to better align expenses with its strategic priorities.