Delta expects a $100 million hit as Paris travel declines during Olympics

Money | July 11, 2024, 3:43 p.m.

The upcoming Olympic Games in Paris this summer are a dream come true for over 10,000 athletes, but for many tourists, the city is not on their travel radar. Delta Air Lines CEO, Ed Bastian, revealed that travelers are avoiding Paris this summer, leading to a $100 million hit for the airline. Delta's third-quarter forecast fell short due to added flights flooding the market. Despite this, Delta remains optimistic about its full-year outlook. Air France-KLM also expects a revenue hit during the Olympic period. Hotel prices in Paris are set to skyrocket, further deterring mid-summer travel. However, Delta sees a trend of travelers shifting European vacations to September and October, outside traditional peak seasons. Additionally, Delta is experiencing increased travel to Japan due to a favorable exchange rate. Paris demand is expected to bounce back post-Olympics, but for now, alternative travel plans seem to be on the rise.