a drop in revenues expected with the Paris 2024 Olympic Games

a drop in revenues expected with the Paris 2024 Olympic Games
a drop in revenues expected with the Paris 2024 Olympic Games

As the Paris 2024 Olympics approach, Air France and its low-cost subsidiary Transavia France are anticipating a difficult summer season. Contrary to expectations, the major sporting event is not leading to an increase in bookings, but rather a decrease. International tourists are avoiding the capital, while the French seem to be postponing their holidays until after the Olympics, suggesting a decrease in revenue for the airline this summer.

A summer season under tension

Air France and its subsidiary Transavia France are forecasting a drop in their summer revenues. Bookings for flights to and from Paris are declining compared to other major European cities. The press release published on July 1, 2024 highlights that international tourists seem to be avoiding the French capital, a situation exacerbated by the Paris 2024 Olympic Games. The Air France-KLM group reports a “significant avoidance” of Paris by foreign travelers. This trend affects not only international flights, but also domestic flights. Demand for July and August is lower than normal, indicating that the French prefer to postpone their vacations until after the Olympic period.

This situation could lead to a drop in unit revenue of 160 to 180 million euros between June and August. The group plans to provide more details when it releases its mid-year results on July 25. However, current forecasts are concerning. In June, the Paris tourist office observed a 14.8% decline in international air arrivals expected in July. This trend has already been evident with a 7.3% drop in arrivals in the second half of May and June.

Tourists who shun Paris

International tourists are less likely to visit Paris this summer, partly because of the Olympic Games. This unexpected situation is leading to a decrease in bookings and revenues for Air France and its subsidiary Transavia France. Consequences for international travelers The Paris tourism barometer indicates a drop in international air arrivals of 14.8% for July, before the start of the Olympic Games on the 26th. This decline has already been visible since May. The phenomenon of “sulking” in Paris by international tourists is worrying for the city’s tourist economy and directly impacts airlines.

The French also appear to be adjusting their holiday plans. Demand for domestic flights is down for the months of July and August. The prospect of the Olympic Games seems to be prompting the French to postpone their holidays until after the festivities. This trend is contributing to the overall decline in bookings and revenue for Air France. The 2024 Paris Olympics, which were supposed to boost tourism, have instead led to a drop in air bookingsAir France and Transavia France, affected by this situation, are waiting for the publication of their mid-year results to fully assess the financial impact of this atypical summer season.

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