Amexco: Profit up as commissions decline: Travel Weekly

NEW YORK -- American Express' full-year earnings report revealed how difficult 2002 was for business travel.

The company took in $1.41 billion in travel commissions and fees, an 8% decrease from 2001, when American Express' commission and fee revenue was $1.54 billion.

The year's dip in commissions and fees came despite fourth quarter 2002 improvement: revenue from commissions and fees increased 10% from $334 million in fourth-quarter 2001 to $369 million in fourth-quarter 2002.

Net income in the fourth quarter for American Express Travel Related Services (which includes the credit-card business) more than tripled year over year, from $170 million to $550 million.

Amexco cut expenses -- including a 7% trim related to employees -- to help achieve the profit mark.

Net income for the full year 2002 was $2.7 billion.

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