The group expects a negative impact of the Olympic Games on its revenues of “between 160 and 180 million euros” between June and August.
Air France-KLM warned on Monday that its revenues would suffer from the Paris Olympic Games this summer, after having noted “a significant avoidance behavior” of the French capital by international customers.
“As a result, Air France-KLM anticipates at this stage a negative impact on its unit revenues of between 160 and 180 million euros for the period from June to August”, in the middle of the high season, the Franco-Dutch group specified in a press release.
This “pressure on unit revenues”, noted by both Air France and the group’s low-cost airline, Transavia, is “attributable to the Paris 2024 Olympic Games. Traffic to and from the French capital is lower than that expected to and from other major European cities”, according to the same source.
The French are postponing their vacations
In addition to “a significant avoidance of Paris behavior” by foreign travelers, Air France-KLM notes that “travel volumes from Paris to other destinations are also lower than the usual average for the June-August period”.
For the group, “French residents appear to be postponing their holidays until after the Olympics or considering alternative travel options.”
Despite this warning on results, Air France-KLM assures that “this event has at this stage no impact on the group’s prospects in terms of capacity”, the number of seats offered to its customers.
He also said that “travel volumes to and from France are expected to normalise after the Olympics, with encouraging levels of demand recorded for the end of August and September”.
