Photo by Ryan Johns
Delta Air Lines isn’t happy about the Olympics being in Paris this summer. They think it’ll hurt their money because people will vacation elsewhere in Europe.
Yikes, that’s rough!
Delta and Air France have a big partnership, controlling about 70% of the travel market between the U.S. and France. Delta flies to Paris more than any other U.S. airline.
The Olympics might really mess up business. Air France-KLM expects to lose around 180 million euros from June to August due to the Games. Tourists who usually visit Paris in the summer are choosing different places.
“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 Olympics or considering alternative travel plans.” — Air France-KLM
Delta’s CEO Ed Bastian isn’t as worried but still expects a $100 million revenue drop compared to Air France’s $195.5 million loss. Not great, but not as bad.
“Unless you’re going to the Olympics, people aren’t going to Paris … very few are. Business travel, you know, other types of tourism are potentially going elsewhere.” — Ed Bastian via CNBC
Paris will be super crowded with tourists and athletes from July 26 to August 11 for the Olympics. Famous spots will be packed with people there for events like volleyball, swimming, archery, and track and field. Non-sport tourists don’t want that hassle.
Hotel prices are crazy high because of demand. Rooms are expected to cost 45% more in July and August, says hotel-data firm STR. Meanwhile, London and Rome’s prices will only go up by 2-5%. So it’s cheaper to go almost anywhere else but Paris.
If folks skip Paris, Delta loses cash. They’re avoiding Paris because of the Olympics. The Olympics are making Delta lose money.
