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Delta Air Lines anticipates a loss of about $100 million due to reduced travel to Paris, impacted by the Olympics. This decline contrasts its record-high second quarter revenues. Delta President Glenn Hauenstein noted that travelers heading to international competitions like the Olympics aren’t the primary revenue drivers for the airline.
“The Olympics are not beneficial for airline revenues, and this year is no exception. While we observe a positive outlook for Europe overall, Paris faces challenges as business travel typically halts during the Olympics,” Hauenstein explained.
Earlier in the month, Air France, which has a loyalty partnership with Delta, also reported a $193 million revenue loss attributed to the Olympics.
Delta generates about 20% of its annual passenger revenue from transatlantic flights. While the Olympics have impacted this revenue stream, Delta is optimistic about future demand. “Looking beyond the Olympics, we are seeing strong fall demand for transatlantic travel,” Hauenstein assured analysts.