Air France sees revenue drop amid Paris Olympics traffic decline

Air France-KLM group cautioned on July 1 it could experience pressure and a potential drop in revenues of up to 180 million euros ($193 million) due to the Olympic Games and a decline in travel to Paris over the summer, Report informs referring to the Daily Sabah.

Some 15 million visitors are predicted to attend the Games, including 2 million from abroad, according to the Centre for Law and Economy of Sport (CDES), which has been monitoring the Paris Games for the International Olympic Committee (IOC) and the Paris 2024 organizers.

However, there have been concerns that the Games may keep other travelers from visiting Paris, which is a major tourist destination during the summer.

"International markets show a significant avoidance of Paris," the airline said in a statement.

"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," it added.

Air France-KLM said it has no plan to scale back capacity, despite the estimates of a negative impact on its revenues for the June until August 2024 period.

It said it would provide more details when presenting half-year results on July 25th.

"Travel to and from France is expected to normalize after the Olympic Games, with encouraging demand levels projected for the end of August and the month of September," it added.