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Earlier this month, Air France announced that it expects to lose around $193 million as a result of the Summer Olympics in Paris. Now, Delta Air Lines is adding that it will see a $100 million loss due to the sporting event. While the Summer Olympics are expected to generate $8.9 billion for the city of Paris, airlines are not reaping the rewards.
Passengers are fearing soaring prices and huge crowds will take over Paris when the Summer Games take place between July 26th and August 11th. The French carrier released a statement that reads:
International markets show a significant avoidance of Paris. 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.”
Delta’s CEO, Ed Bastian, told CNBC this week that both business travelers and tourists were avoiding Paris. This trend will cost the Atlanta-based carrier as much as $100 million this quarter as a result. Bastian said:
Unless you’re going to the Olympics, people aren’t going to Paris … very few are. Business travel, you know, other type of tourism is potentially going elsewhere. During the period itself there’s a little bit of a hesitation.”
Delta and Air France maintain around 70% of the marketshare for nonstop flights to and from the United States. Hotel rooms prices surged ahead of the Olympics and this has caused many to look elsewhere. Destinations like Japan, where the exchange rate is favorable, are being snapped up ahead of the City of Lights.
Anthony’s Take: I can’t say I blame people. Paris is not a cheap city to begin with and once you add in the Olympics, you’ve got a big credit card bill on the horizon. It’s likely a good time to snag an upgrade if you have certificates for Delta and can find a room, though.
(Featured Image Credit: Delta and Air France.)
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3 comments
Just go to the facebook Paris group pages it’s out of control. Last minute cancellations Airbnb scams and even the new strikes just avoid Paris this year
People are still travelling via Paris and flights are very full. They expected a significant refund stream from those terminating or stopping over.
It’s also easy for people to stay elsewhere eg London and travel to Paris via train for a day or two.
AF is still carrying a large number of Olympic/ Paralympic teams however many closer to Paris are not coming by air. I believe Team GB is using Eurostar.
Many are also waiting until after the games.
Revenue stream – not refund lol