Air France-KLM has warned that travellers avoiding Paris due to the forthcoming Olympic Games could cause a revenue hit of up to €180 million ($193 million) at its French operations.
The group says both Air France and Transavia are ”currently experiencing pressure on projected unit revenues for the summer season”, noting traffic to and from the French capital is lagging behind other major European cities.
“International markets show a significant avoidance of Paris,” Air France-KLM said in a stock market update on 1 July.
“Travel between the city and other destinations is also below the usual June-August average as residents in France seem to be postponing their holidays until after the Olympic Games or considering alternative travel plans.
“As a result, Air France-KLM currently estimates a negative impact on its forthcoming unit revenues in an order of magnitude, from €160-180 million for the period June until August 2024,” it says.
It adds this has no impact on its guided capacity “at this stage” and that it expects travel to and from France to normalise after the Olympic Games, citing ”encouraging demand levels projected” for the end of August and September.
The Olympic Games in Paris runs from 26 July to 11 August.
