(Reuters) – Air France-KLM shares fell on Monday after saying it expected a negative impact on its unit revenues for the summer season, with operators Air France and Transavia France seeing a drop in traffic linked to the Paris Olympics.
The group estimates this impact for the period June-August between 160 million and 180 million euros, adding that at this stage the group’s capacity outlook remains unchanged.
On the Paris Stock Exchange, around 11:00 GMT, the stock fell around 3% to 7.96 euros, compared to a gain of 1.61% for the SBF 120 index at the same time.
Air France cites significant Paris avoidance behavior in international markets, with travel between the French capital and other destinations lower than the usual June-August average.
“French residents appear to be postponing their holidays until after the Olympic Games or considering alternative travel options,” the group noted in a press release.
“The Olympics were unlikely to prove positive for the group, but the disappointment remains great,” says Neil Glynn, analyst at Air Control Tower.
The French Ministry of Transport announced at the end of 2023 the establishment of a no-fly zone over Paris on the evening of the opening ceremony of the Olympic Games, which risks disrupting activities of Air France and its competitors.
The group expects travel volumes to and from France to return to normal after the Olympic Games, which take place from July 26 to August 11.
(Written by Dagmarah Mackos and Mathias de Rozario, edited by Blandine Hénault and Augustin Turpin)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
