Air France braces for €180 million loss as tourists avoid Paris Olympics

Air France is anticipating a financial hit of approximately €180 million due to a drop in tourist bookings linked to the 2024 Paris Olympics.

The event, running from July 26 to August 11, is the first Olympics hosted in Paris in a century. Although Air France is the official airline, it has noted a decline in bookings as non-Olympic tourists are deterred by the prospect of large crowds and elevated prices for accommodation and other tourist activities, Caliber.Az reports per foreign media.

This trend has led to fewer flight bookings to and from Paris compared to other major European cities, potentially causing a significant dip in the Air France-KLM Group’s revenue for the June-August period. The group highlighted that both international and domestic travel involving Paris is down, with many French residents opting to delay their vacations or choose alternative destinations until after the Games.

Air France expects travel patterns to return to normal after the Olympics, with a promising increase in demand projected for late August and September. Despite this, the airline remains optimistic about carrying a substantial number of Olympic athletes and supporters. By early June, Air France had anticipated transporting 20 per cent of all athletes and para-athletes to Paris, primarily from countries like Brazil, the US, Italy, and Japan. The airline also expects to handle up to 125,000 customers daily during summer 2024, matching pre-pandemic levels, with peak traffic anticipated around the Games' opening and closing dates.

In addition to the Olympic-related concerns, the upcoming French elections are also causing uncertainty for potential tourists. The first election round took place on June 30, with the final round scheduled for July 7. Currently, the far-right National Rally party, led by Marine Le Pen, is leading in the polls. The possibility of protests and unrest following the election results is further dampening the tourism outlook for Paris.