Paris Olympics Impact Summer Bookings for Air France and Transavia France
Air France and Transavia France are facing significant pressure on their projected unit revenues for the summer season due to the upcoming Olympic Games in Paris. The traffic to and from the French capital is currently lagging behind other major European cities, indicating a trend of international markets avoiding Paris.
This avoidance of Paris has led to a notable decrease in travel between the city and other destinations, with numbers falling below the usual June-August average. Many residents in France appear to be postponing their holidays until after the Olympic Games or are considering alternative travel plans altogether.
As a result, Air France-KLM estimates a negative impact on its forthcoming unit revenues, ranging from €160 million to €180 million for the period of June through August 2024. This projected revenue loss does not affect the group's guided capacity at this stage. Further details will be shared during the Group’s half-year results on July 25th.
Despite the current challenges, travel to and from France is expected to normalize post-Olympics. Encouraging demand levels are projected for late August and September, providing a positive outlook for the end of the summer travel season.