“Despite the widespread price restructuring earlier this year that decreased airfares, fares continue to rise as more people fly and discounts become less available. Furthermore, upward pricing pressures remain as the cost of oil continues its rise; fares will likely climb in the coming months,” said Andy McGraw, Senior Vice President and General Manager of American Express Business Travel North America. “However, and notably, American Express Business Travel clients continue to pay less than they have in recent years. The average fare paid is down approximately 40 dollars from year-end 2000.”

Average Fare Paid Continues Year-over-Year Decline
According to the American Express Business Travel Monitor, which tracks 329 domestic city pairs, the U.S. domestic average fare paid for business travel during the second quarter of 2005 decreased seven percent to $218 one-way, down from $233 one-way for the same period in 2004, but up eight percent from the $202 one-way fare posted in the first quarter of 2005.

The annual Average Fare Paid has steadily declined since year-end 2000, as follows:

• 2000 - $259
• 2001 - $259
• 2002 - $243
• 2003 - $243
• 2004 - $225
• Q1 2005 – $202
• Q2 2005 – $218

The average fare paid reflects the price paid by American Express Business Travel clients and includes a variety of fare types actually booked by business travelers including first class, unrestricted and discount air fares. The American Express Business Travel's average fare paid continues to be lower than published business airfares.

International Travel Rates Rise
In contrast, across the American Express Business Travel Monitor's 160 international city pairs, for the second quarter of 2005 the international average fare paid grew six percent to $1,609, with first class and business class international airfares also increasing six percent to $5,748 and $3,851 respectively, as compared to the second quarter of 2004.

Comparing the second quarter of 2005 to the first quarter of 2005, the average, one-way business class international fare increased one percent to $3,851, and the average one-way first class international fare also increased one percent to $5,748. For the same period, the average one-way discount economy international fare saw a three percent increase to $1,052.

International and Domestic Hotel Rates Soar
Based on the Monitor's findings, American Express Business Travel also reported that average booked hotel rates increased for both international and domestic hotels in the second quarter of 2005 when compared to the same period in 2004. The international booked rate increased to $214 from $195, while the U.S. domestic booked rate increased to $135 from $128.

Booked hotel rates, both international and domestic, represent the total spending of all American Express Business Travel clients divided by the total number of room nights confirmed.

“Strong international business travel demand continues to boost both airfare and hotel rates,” said Mr. McGraw.

Car Rental Costs Climb Slightly
Via the Monitor, American Express Business Travel noted that the average daily cost for car rentals with the American Express® Corporate Card, which includes all charges incurred (mileage, gas, tax and insurance), grew by two percent to $64.82 in the second quarter of 2005 when compared to the same period in 2004. During the same time, the average length of rental in days (2.9 days) remained relatively the same.

About the American Express Business Travel Monitor
eCLIPSE Advisors, the global travel procurement subsidiary of American Express, creates the American Express Business Travel Monitor, a benchmarking service that offers corporations a comprehensive collection of pricing data across major travel and entertainment (T&E) expenses, by accessing American Express' extensive global database of purchase information.  The American Express Business Travel Monitor tracks a variety of travel expense categories, including published and purchased airfares captured across hundreds of domestic and international routes.

American Express Business Travel is dedicated to helping its customers realize the greatest possible value from their investment in travel through increased cost savings, outstanding customer service and greater spend control.  For small businesses, medium-sized enterprises and multinational corporations, American Express Business Travel provides a combination of industry-leading booking technology, travel management consulting expertise, strategic sourcing and supplier negotiation support and customer service available around the world, around the clock, online and offline.

About American Express
American Express Travel Related Services Company, Inc. operates one of the world's largest travel agency networks, recording $19.9 billion in worldwide travel sales in 2004.

The American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.

American Express acts solely as sales agent for travel suppliers and is not liable for the actions or inactions of such suppliers. CST# 1022318-10, TA# 002- Registered Iowa Travel Agency, NV# 2001-0126, ML#1192, Washington UBI# 600-469-694

Contacts:
Gregory Papajohn
212.640.3414
Gregory.N.Papajohn@aexp.com