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Air France warns of up to €180 million revenue hit from Olympics
Tourists look to avoid Paris this summer and locals push back their holidays until after the upcoming games.
This brief was originally published in Cirium Dashboard. Cirium Dashboard features analysis, insights together with schedules, fleets, traffic and financial data, premium reports and in-depth industry news.
Air France is warning that it expects to take a €160-180 million ($172-194 million) hit to revenues during its peak summer period as a result of the impact of the Olympic games.
In a market update, the French carrier and its low-cost subsidiary Transavia warn that they “are currently experiencing pressure” on unit revenues as tourists look to avoid Paris this summer and locals push back their holidays until after the upcoming games.
Bookings to and from the French capital, which will host the international sporting event between 26 July to 11 August, are “lagging behind other major European cities”, says Air France in a market update.
Travel from the city to other destinations is also lower than usual, which the company attributes to French residents “postponing their holidays until after the Olympic games or considering alternative travel plans.”
Air France has not provided guidance on the games’ impact on its overall capacity.
Travel to and from France is expected to normalise after the Olympic games, with encouraging demand levels projected for the end of August and the month of September.
Air France notes that the Paris tourism board has seen a similar dynamic play out for hotel bookings in the city.
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