Air France down in Paris, with the Olympics risking a boomerang on tourism revenues | EUROtoday

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(The Sun 24 Hours Radiocor) – Air France-Klm retreats to the Paris Stock Exchange, after having anticipated a detrimental influence on its revenues as a result of vacationers are avoiding the French capital due to the Olympic Games. The shares of the Franco-Dutch airline misplaced 3% to 7.98 euros, bucking the development of the CAC 40 index which is fighting a post-election rebound.

Af-KLM warned that «Air France and Transavia France are registering a strain on unit revenues anticipated for the summer time season on account of the upcoming Olympic Games in Pariswith visitors to and from the French capital decrease than different main European cities. The firm highlights that “international markets are showing a significant tendency to avoid Paris. Travel between the city and other destinations is below the June-August average also because residents in France appear to be postponing their holidays until after the Olympics or are considering alternative travel plans.”

As a end result, Air France-KLM «at present estimates a detrimental influence on unit revenues of the order of 160-180 million euros for the interval June-August». The group expects visitors to normalize after the Olympics, as evidenced by «the encouraging stage of demand for the top of August and the start of September». More particulars shall be supplied when the half-yearly accounts are revealed on July 25.