Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
Your Instagram feed may make it look like everyone is in Paris for the 2024 Olympics, but at least one airline says travelers may not be flocking to the City of Light during the world's biggest sporting event.
Delta Airlines CEO Ed Bastian told CNBC that the company will lose $100 million this summer because customers without Olympic tickets will miss out on a vacation to Paris.
Related: These are the airlines with the most satisfied customers, according to a new report
“If you don't go to the Olympics, people won't go to Paris… very few,” Bastian said. “Business travel and other types of tourism may migrate elsewhere.”
Of all the major U.S. airlines, Delta offers the most flights to Paris, thanks to a partnership with Air France. Delta offers about 14 nonstop flights from France to the U.S. daily, and Delta and Air France account for an estimated 70% of all nonstop flights between the countries, according to data from CNBC.
“Aside from this temporary event, demand for summer travel to Europe is strong and in line with our expectations,” said Glen Hauenstein, president of Delta, during a conference call with investors.
Air France is also feeling the strain: The company is forecasting a revenue loss of up to 180 million euros, or nearly 195.5 million dollars, between June and August this year “due to the upcoming Olympic Games in Paris, with traffic to and from the French capital lagging behind that of other major European cities.”
The airline said travel in and out of the country is expected to “normalise” after the Games end as demand returns.
“International markets are clearly avoiding Paris,” Air France said in a press release earlier this month. “Travel between the city and other destinations is also below the usual June-August average, as the French appear to be postponing their holidays until after the Olympics or considering alternative travel plans.”
Related: Major US airlines sue government over ‘capricious’ fee transparency law
The 2024 Summer Olympics will begin on Friday, July 26, and last until Sunday, August 11.
Delta reported record operating revenue of $15.4 billion in its second-quarter 2024 results release on Thursday, up 5.4% from the same period last year.
The airline also forecast total revenue to increase by 2-4% year-on-year for the third quarter of 2024.
“Demand for travel during the peak summer months remains strong and Delta is delivering exceptional experiences to our customers,” Hauenstein said in a company press release.
Delta was down just over 8.5% on Friday morning compared to the same period last year.
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
