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Air Travel

Air France-KLM faces �180m hit to bookings from Olympics

By Rob Gill / 1 July 2024 / Contact Reporter

Air France A380

Air France-KLM has warned that its sales are ��experiencing pressure�� due to the upcoming Olympic Games in Paris, as international markets show ��significant avoidance�� of the French capital this summer.

The company said that traffic to and from Paris for Air France and sister carrier Transavia France was ��lagging behind�� other major European cities this summer.

��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,�� added Air France-KLM in a statement.

Air France-KLM said this drop in demand is likely to reduce previously forecast revenue by between �160 million and �180 million for the three months from June to August. Although the group said it was not planning to change capacity plans ��at this stage��.

Paris will host the Olympics from 26 July to 11 August, followed by the Paralympics from 28 August to 8 September. Air France is an official partner of both events.

��Travel to and from France is expected to normalise after the Olympic Games, with encouraging demand levels projected for the end of August and the month of September,�� added the airline.

In a separate move, Air France-KLM has announced an increase in its surcharge on GDS EDIFACT bookings, which goes up from �21 to �24 per flight from 1 July.

Currently this fee only applies to leisure travel agencies after the airline group again postponed the introduction of the GDS surcharge for business travel agencies from 1 July 2024 to 1 January 2025. This was the fourth time that Air France-KLM has postponed implementation of the EDIFACT surcharge on corporate agencies.

��Since the implementation in April 2018, Air France and KLM indicated that the level of the distribution surcharge would be regularly reassessed and could change in the future,�� said the group in a statement.

��The revaluation is necessary because the cost difference has increased since the introduction of the distribution surcharge.��

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