⚠ The Lounges Are ContestedModerate threat

American Express (AXP) — threat to the moat

Airport lounges are a benefit rivals can build too, and competition for the space raises what each lounge visit costs.

Airport lounges are a physical asset, and American Express says it has competition for them. Its 2025 annual report names "heightened competition" in the premium space, including for "lounge space in U.S. and global hub airports" and for dining experiences1. It also says: "We face intense competition in the premium space and for cobrand relationships"2.

Card Member services growth (%)+34%2023+21%2024+27%2025+50%Q2 2026Calculated from American Express Forms 10-K FY2025; Q2 2026 supplement
The fastest growth in the series came in the latest quarter.

Competition for scarce space raises its price. Lounge space in a hub airport is limited by the airport itself, and when several issuers want it, landlords can charge more and the cost of each benefit rises.

Amex has been building its own, and opened a 31st Centurion Lounge, in Salt Lake City, at the end of 20253. But an advantage in lounges is a matter of years of building, not a permanent position, and a rival bank can build too.

Crowding is the other risk. A lounge that is always full loses the value that justified the fee, and the fix is more space, which means more cost.

The company keeps adding space. Its 31st Centurion Lounge, at Salt Lake City International Airport, opened at the end of 20254, and each new lounge is both a benefit and a fixed cost that must be paid whether the cardholder visits or not.

This danger shows up in the same line as the others. Card Member services expense was $6,057 million in 20255; if the growth rate stayed near 50% for a full year after the Platinum refresh had lapped, the rise would be coming from the price of the benefits rather than from new cardholders using them.

References
  1. ReportedIts 2025 annual report names "heightened competition" in the premium space, including for "lounge space in U.S. and global hub airports" and for dining experiences.
    American Express Form 10-K for fiscal 2025 - Item 1A risk factors, competition and regulation. — FY2025 · publ. 6 February 2026 · source ↗
  2. ReportedIt also says: "We face intense competition in the premium space and for cobrand relationships".
    American Express Form 10-K for fiscal 2025 - Item 1A risk factors, competition and regulation. — FY2025 · publ. 6 February 2026 · source ↗
  3. ReportedAmex has been building its own, and opened a 31st Centurion Lounge, in Salt Lake City, at the end of 2025.
    American Express fourth-quarter and full-year 2025 earnings release, Form 8-K exhibit 99.1 - 2026 guidance and the dividend increase. — Q4 2025 · publ. 30 January 2026 · source ↗
  4. ReportedIts 31st Centurion Lounge, at Salt Lake City International Airport, opened at the end of 2025, and each new lounge is both a benefit and a fixed cost that must be paid whether the cardholder visits or not.
    American Express fourth-quarter and full-year 2025 earnings release, Form 8-K exhibit 99.1 - 2026 guidance and the dividend increase. — Q4 2025 · publ. 30 January 2026 · source ↗
  5. ReportedCard Member services expense was $6,057 million in 2025; if the growth rate stayed near 50% for a full year after the Platinum refresh had lapped, the rise would be coming from the price of the benefits rather than from new cardholders using them.
    American Express Form 10-K for fiscal 2025 - Card Member rewards, Membership Rewards liability, business development and Card Member services. — FY2025 · publ. 6 February 2026 · source ↗
Sources
Generated September 28, 2026