Travel and leisure spending rebounded in the second quarter, and it wasn’t consumers who were making the purchases, according to the latest results from American Express. The company said consumer spending in this category exceeded pre-Covid levels for the first time in April. It should be noted that there has also been a significant rise in corporate travel. The results were good enough for AmEx to raise its revenue forecast, and the company’s shares jumped more than 5% on the news. AmEx expects revenue to rise between 23% and 25% this year, up from a previous forecast of 18% to 20%. Analysts surveyed by Refinitiv were calling for revenue growth of 19% this year. However, the company’s earnings expectations remain the same. AmEx expects earnings of $9.25 to $9.65 per share, lower than the $9.83 per share analysts had expected. The results are another example of the conflicting headlines that investors are seeing as they weigh the potential for a recession. Decades-old high inflation has forced the Federal Reserve to raise interest rates to cool the economy. At the same time, pent-up consumer demand, especially for experiences such as travel, concerts, and other entertainment, is spending a lot freely. In the last quarter, AmEx said total spending on the card was up 30% on a currency-neutral basis thanks to a combination of strong demand and, of course, higher prices for many goods and services these days. The company said millennial and Generation Z consumer spending was particularly strong, jumping nearly 50%. In the second quarter, AmEx earned $1.96 billion, or $2.57 per share, on revenue of $13.4 billion. That compares to average earnings of $2.41 per share on revenue of $12.5 billion from Refinitiv. Revenue is up 31% from last year. AmEx earned $2.28 billion, or $2.80 per share, in the second quarter of 2021. The impact on AmEx’s performance was the need to add $410 million in provision for credit losses. Last year, it posted a benefit of $606 million. Consumers also cashed in the reward points they earned to expand their dollars further. This brought expenditures up by about a third to $10.4 billion. Stephen Squire, CEO of AmEx, said during an earnings call: “We don’t see a significant decline in demand in the T&E classes anytime soon based on the strength of future bookings coming through consumer travel agency and the trends of our travel industry partners like Delta, particularly in the space Outstanding.” According to Squire, low unemployment makes a difference. “We still don’t see any signs of pressure in our consumer base,” he said. Chief Financial Officer Jeffrey Campbell said that business travel showed a significant acceleration in growth during the quarter. “This is a sign of a more meaningful recovery in business travel,” he said.