• International Airfares and Hotel Rates Rise
• Car Rental Costs Remain Steady

NEW YORK, June 20, 2005 -- According to data released today by American Express Business Travel, the world's largest travel management company, average domestic airfares for routes in the United States dropped to a five year low for the first quarter of 2005. For the same period, international airfares grew slightly as did international and domestic hotel rates, while car rental costs remained relatively unchanged.

“Despite soaring fuel costs, American Express Business Travel clients are paying the lowest price in five years for domestic air travel even as international airfares continue to climb,” said Andy McGraw, Senior Vice President and General Manager of American Express Business Travel North America. “Aggressive fare restructuring and corporate negotiated rates have fueled the recent downward trend, though our data suggest that with the rebound in business travel, rate rises may return in the near term.”

Average Fare Paid Drops to Five Year Low
According to the American Express Business Travel Monitor, the U.S. domestic air Average Fare Paid for business travel during the first quarter of 2005 was $202 one-way, down from $234 one-way for the same period in 2004. However, April 2005 data increased to $210 one-way, revealing that fares may be on the rise.

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

• 2000 - $259
• 2001 - $259
• 2002 - $243
• 2003 - $243
• 2004 - $225

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 Typical Business airfares.

International Travel Rates Continue To Rise
In contrast, across American Express Business Travel Monitor's 160 international routes, for the first quarter of 2005 the international Average Fare Paid grew four percent, with First Class and Business Class international airfares each increasing seven percent, as compared to the first quarter of 2004. The average, one-way Business Class fare was $3,803, while the average one-way First Class fare was $5,684. For the same period, the average one-way Discount Economy international fare saw a two percent drop to $1,019.

“We have seen a considerable increase in international travel costs, particularly across Asia, where robust economic growth continues to drive strong traffic demand,” said Mr. McGraw.

International and Domestic Hotel Rates Strengthen
American Express Business Travel also reported that average booked hotel rates increased for both international and domestic hotels in the first quarter of 2005 when compared to the same period in 2004. The international Booked Rate increased significantly to $206 from $183, while the U.S. domestic Booked Rate increased to $137 from $133.

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.

Car Rental Costs Remains Steady
Further, American Express Business Travel reported the Average Daily Cost for car rentals with the American Express® Corporate Card, which includes all charges incurred, including mileage, gas, tax and insurance, remained relatively unchanged at $66 in first quarter 2005.

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) expense categories in the marketplace today, 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.

About American Express Travel Related Services
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:
Tom Wilson
212.640.0539
Thomas.S.Wilson@aexp.com