Air France-KLM issued a warning on Monday, predicting a decrease in revenues up to 180 million euros ($193 million) due to reduced travel to Paris during the Olympic Games.
The Centre for Law and Economy of Sport (CDES) estimates that 15 million visitors, including two million from abroad, will attend the Games in Paris.
However, there are concerns that the Games could deter other travelers from visiting Paris, a popular tourist destination in the summer.
The airline stated, “International markets are demonstrating significant avoidance of Paris.”
Air France-KLM confirmed they do not plan to reduce capacity despite the anticipated impact on revenues from June to August 2024. Further details will be provided during the half-year results presentation on July 25th.
The airline expects travel to and from France to normalize after the Olympic Games, with strong demand projected for the end of August and September.
– Official partner –
Air France-KLM shares rose by 0.6 percent in morning trading, as the Paris stock exchange’s CAC 40 index saw a more than two percent increase, following relief that the far right did not secure a parliamentary majority in the recent elections.
As of late, Air France-KLM reported promising ticket sales levels for summer and aimed to increase seat capacity by five percent compared to the previous summer.
As an official partner of the Paris Olympic and Paralympic Games, Air France has plans to leverage the events to enhance its brand and showcase its services.
The airline is expected to transport a significant number of Olympic and Paralympic athletes, with the goal of hitting pre-pandemic activity levels this summer.
The June-August quarter is crucial for airlines in the northern hemisphere, as it is during the summer vacation season that they generate a significant portion of their profits.
Despite facing challenges and losses, Air France-KLM remains focused on cost-cutting measures and operational efficiency.
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