Skift Airline Weekly Lounge

In part one, Gordon Smith and Jay Shabat examine why this summer's Olympic and Paralympic Games in Paris are likely to be a financial drag on Air France. In part two, we turn our attention to U.S. airlines and ask what the second half of 2024 could hold for some of the country's biggest carriers. Key Points: Air France and the Olympics Impact Olympic Disruption: Air France expects a revenue hit of €160-€180 million ($175-$200 million) for Q3 due to international markets avoiding Paris during the Olympics. KLM Insights: KLM CEO noted a decline in Paris-bound passengers, with potential shifts to Amsterdam as an alternative hub. Airline Challenges with Major Events: Airlines, including Air France, generally find large events like the Olympics disruptive and not as profitable, contrary to what might be expected. Long-term Benefits: Infrastructure improvements (e.g., Orly Airport upgrades) may benefit Air France KLM long-term, despite short-term disruptions. Key Points: Outlook for US Airlines in H2 2024