AMERICAN EXPRESS BUSINESS TRAVEL ANNOUNCES ADJUSTED RESULTS OF FORECAST IN ANTICIPATION OF GLOBAL ECONOMIC SLOWDOWN

NEW YORK, October 22, 2008 -- American Express Business Travel today published its annual Global Business Travel Forecast and Trends report. Originally slated for release in September, the American Express Advisory Services department responsible for producing the report delayed its release in order to evaluate the impact of market activities that have occurred over the last 30 days. In the past weeks, modifications were made to reflect the potential impact of the anticipated global economic slowdown. In certain markets, the Forecast predicts a negative increase in 2009 to airfares and hotel rates. Both suppliers and buyers of travel and related services are expected to face new operating challenges in the coming year.

"Based on forecasted economic conditions for 2009 and the substantial increase in fares already experienced in 2008, it is possible that airfares in 2009 may decrease," said Hervé Sedky, vice president and general manager, Global Advisory Services, American Express Business Travel. "However, this doesn't necessarily correlate to a decrease in prices paid as airlines continue their pursuit of expanding the suite of fees charged for services such as in-flight meals and baggage. In this difficult economic environment, successful T&E management strategies will be based upon the total cost of a business trip, which takes into consideration costs such as parking fees, airline fees, meals and other related expenses."

Global Business Travel Forecast

U.S. Visa Waiver Program Expands

The U.S. Visa Waiver Program--which allows citizens of certain countries to travel to the United States for up to 90 days without obtaining a visa--has been expanded to include the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovakia, and South Korea. Travel Industry Association President and CEO Roger Dow called the expansion "a momentous leap forward for the American economy and proof that we can simultaneously strengthen America's security and welcome additional visitors."

Airlines Roundup: Carriers Slash Fuel Surcharges

Some major airlines have begun cutting the fuel surcharges they impose on flights between the United States and Europe, the Associated Press reports. The move comes in response to falling oil prices worldwide.

-Southwest Airlines announced its first capacity cuts in 23 years--and also reported its first quarterly loss in 17 years, according to USA Today.

-The Federal Aviation Administration could save U.S. airlines up to $10 billion a year if it were to implement a "NextGen" satellite-based air-traffic-control system that would streamline flight routes across the country, the AP reports. But adoption of the NextGen system, which would cost about $35 billion, has been stalled in part because of funding delays and the complexities of the switchover.