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July 16, 2024
Egypt Bulletin

Paris Olympics expected to cause slump in Air France revenue

Air France-KLM has expressed concerns over potential financial setbacks due to the Paris Olympics, projecting a substantial decrease in travelers to and from the city this summer. As the city gears up to host the international sporting event later this month, the airline anticipates losses ranging from €160 million ($172 million) to €180 million ($193 million), as tourists are deterred by anticipated high prices and possible flight disruptions between July 26 and August 11.

Paris Olympics expected to cause slump in Air France revenue

The group has increased flight capacities to accommodate Olympic spectators, yet it expects normal travel patterns to resume post-Games, with hopeful demand in late August and September. Locals in Paris are also adjusting their plans, with many postponing summer vacations until after the Olympics.

This shift is reflected in the travel data, which shows travel to other destinations from Paris well below the usual levels for this time of year. Air France-KLM reported a significant drop in bookings, with a 14.8 percent decrease in foreign arrivals in July compared to the previous year, and hotel occupancy rates in early July hovering around 60 percent, down 10 percent from last year.

The Paris Tourist Office notes a similar trend, with a noticeable decrease in American tourists currently in Paris, although they are expected to be the primary international visitors during the Olympics. Despite the drop in typical tourist activities, Paris is not devoid of attractions. The city’s luxury hotels are enhancing their services with special wellness programs and art exhibitions, while major brands like Omega and Ralph Lauren are launching products themed around the Olympics, adding to the festive atmosphere.

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