Delta Air Lines has reported a significant decline in travel bookings to Paris for summer 2024, as travelers opt for other destinations amid the Olympic Games, leading to a projected $100 million loss for the airline. CEO Ed Bastian highlighted that unless travelers are attending the Olympics, they are avoiding Paris, impacting both business and leisure travel to the city.
Delta’s president, Glen Hauenstein, noted that the airline’s extensive service to Paris, along with its joint venture with Air France, gives them a substantial market share of approximately 70% in nonstop service between the U.S. and France. Despite this, the airline’s third-quarter profit and revenue forecast fell short due to an oversupply of flights and the avoidance of Paris as a travel destination.
Similarly, Air France-KLM, the parent company of Air France, has forecasted a revenue hit of up to 180 million euros ($195.5 million) from June through August because of the Olympics. This avoidance of Paris is attributed to travelers postponing their holidays until after the Games or choosing alternative destinations.
The Paris 2024 Olympics are scheduled to run from July 26 through August 11, a period when hotel prices in the city are expected to soar. STR, a hotel-data firm, predicted a 45% increase in revenue per available room for upscale hotels in Paris during July and August compared to the previous year. In contrast, London and Rome are expected to see only a 3% to 5% and 2% to 4% increase, respectively.
Despite the current decline in travel to Paris, both Delta and Air France-KLM expect demand to rebound strongly after the Olympics. This trend of avoiding peak summer travel is also seen in a broader context, with many travelers shifting their European vacations to September and October for more favorable weather and less crowded conditions.
In contrast to the decline in Paris-bound travel, Delta is experiencing a surge in travel to Japan, driven by a favorable exchange rate for U.S. tourists. Hauenstein pointed out that the yen’s current value against the U.S. dollar has made Japan a more affordable destination, leading to increased bookings.
Delta’s commitment to the Olympics extends beyond passenger travel. The airline has unveiled a custom Airbus A350 adorned with a Team USA livery, celebrating its eight-year partnership with the U.S. Olympic and Paralympic Committee. This aircraft will manage travel for U.S. Olympic and Paralympic athletes to the Paris Games, with Delta continuing this support through the 2028 Olympics in Los Angeles.
