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Delta Air Lines reports that travelers are avoiding Paris ahead of this summer's Olympics, and their aversion to the French capital is costing the company $100 million.
Delta CEO Ed Bastian told CNBC this week that tourists and business travelers were flying elsewhere this summer.
“Unless you’re going to the Olympics, people aren’t going to Paris ... very few are,” he said. “Business travel, you know, other type of tourism is potentially going elsewhere.”
Delta has felt the brunt of the tourist snub because it services more American travel to France than any other US airline, in a joint venture with Air France. The carriers have a combined 70 percent market share in nonstop service between France and the US, CNBC reports.
Air France has also noticed the summer downturn.
The airline's parent company, Air France-KLM, reported a revenue loss of as much as 180 million euros — approximately $195.5m — between June and August due to the Olympics.
“International markets show a significant avoidance of Paris,” the company said. “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.”
This year's Summer Olympics in Paris runs from July 26 through August 11. Some 15 million visitors are expected to attend the events, including 2 million from overseas, Le Monde reports.
Despite the summer lull, both Delta and Air France-KLM say they are confident travel to Paris will pick back up once the Olympics have ended.
Delta president Glen Hauenstein said during an earnings call on Thursday that despite the dip in France-bound flights, the company has seen a boom in travel to Japan. He attributed the increased travel to a favorable exchange rate.
