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Travelers Opt Out of Paris Ahead of the Olympics
Delta Air Lines Faces $100 Million Loss as Travelers Decline to Paris This Summer, a trend linked to the upcoming Summer Olympics. This avoidance is projected to cost Delta approximately $100 million in revenue. Ed Bastian, Delta’s CEO, revealed to CNBC that both tourists and business travelers are opting for other destinations during this period. “Unless you’re going to the Olympics, people aren’t going to Paris … very few are,” Bastian stated. This trend suggests a broader shift in travel preferences, with business travel and other types of tourism diverting to alternative locations.
Delta Air Lines Faces $100 Million Loss as Travelers Avoid Paris This Summer, impacting both Delta and Air France-KLM significantly
The financial impact on Delta is particularly pronounced due to its extensive service network between the US and France, operated in partnership with Air France. This joint venture holds a dominant 70 percent market share in nonstop flights between the two countries. As a result, Delta has been more severely affected by the downturn in travel to Paris. Air France-KLM, the parent company of Air France, has also experienced a substantial revenue loss.
The company reported a decrease of up to 180 million euros (approximately $195.5 million) in revenue between June and August, attributing the decline to the Olympics. “International markets show a significant avoidance of Paris,” Air France-KLM stated, noting that travel between Paris and other destinations is also below average as French residents appear to be postponing their holidays or choosing alternative travel plans until after the Olympic Games.
Future Outlook and Travel Trends
The Paris 2024 Summer Olympics, set to take place from July 26 to August 11, are expected to attract around 15 million visitors, including 2 million from overseas. Despite the current downturn, both Delta and Air France-KLM remain optimistic about a rebound in travel to Paris post-Olympics. Delta President Glen Hauenstein, during an earnings call, acknowledged the temporary dip in France-bound flights but highlighted a surge in travel to Japan. He attributed this increase to a favorable exchange rate, indicating that while Paris experiences a temporary decline, other international destinations are benefiting from shifts in travel trends.
