Air France-KLM Profits Slump As Olympics Avoidance Bites
Annual net earnings fell to 317 million euros ($342 million) from 934 million euros in 2023.
Air France-KLM said Thursday its profits dropped last year in large part because tourists avoided its home base of Paris during the summer Olympic Games in the French capital.
Annual net earnings fell to 317 million euros ($342 million) from 934 million euros in 2023, the airline said in a statement.
The drop came even as revenues rose 4.8 percent to 31.5 billion euros.
Profits were hit by an “Olympic Games effect” that saw travellers avoid Paris, one of the world’s most visited cities, during the key summer season, the airline said.
Along with lost revenue, Air France-KLM said the Games also required total staff bonuses of 50 million euros during the period.
Nonetheless, “the Olympic Games provided a unique platform to demonstrate our operational expertise and capabilities and offered unparallelled visibility for France as a destination,” chief executive Benjamin Smith said in a statement.
The airline maintained its forecast of an operating margin greater than eight percent for the period of 2026-2028, up from 5.1 percent last year.
“We remain confident in achieving our medium-term ambition, with a disciplined approach to capital allocation and cost efficiency,” Smith said.
AFP
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