Delta and Air France expect to lose $300,000,000 on Olympics as travellers avoid Paris

 

Delta says the Olympics will cost it $100 million

as travelers skip Paris

The airline has the most service of any U.S. carrier to Paris and has a joint venture with Air France.

July 11, 2024, 12:49 PM PDT / Source: CNBC

By Leslie Josephs, CNBC

For more than 10,000 Olympic athletes, making it to Paris this summer is a dream come true. Thousands of potential tourists feel otherwise.

Delta Air Lines says travelers are avoiding the city this summer and booking to destinations elsewhere, amounting to a $100 million hit for the airline during an otherwise bustling summer for European travel, CEO Ed Bastian said.

Delta’s third-quarter profit and revenue forecast fell short of Wall Street expectations after airlines flooded the market with added flights. The airline reiterated its full-year outlook Thursday.

“Unless you’re going to the Olympics, people aren’t going to Paris...very few are,” Bastian told CNBC. “Business travel, you know, other type of tourism is potentially going elsewhere.”

Delta has the most service of any U.S. airline to Paris and has a joint venture with Air France. Together the two carriers have approximately 70% market share in nonstop service between the U.S. and France, according to consulting firm ICF.

Air France down almost $200,000,000

On July 1, Air France-KLM, the parent of Air France, forecast a revenue hit of as much as 180 million euros $195.5 million) in June through August because of the Olympic Games.

“International markets show a significant avoidance of Paris,” the company said. “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.”

The cost and availability of hotel rooms may be the biggest factor, but one has to wonder if the near daily stories of Islamic terrorism also plays a part.