Paris: Air France-KLM announced a significant decline in profits for the previous year, attributing the downturn primarily to tourists steering clear of Paris during the summer Olympic Games hosted in the French capital.
According to Bangladesh Sangbad Sangstha, the airline's annual net earnings fell sharply to 317 million euros ($342 million) from 934 million euros in 2023. This decline occurred despite a 4.8 percent increase in revenues, which reached 31.5 billion euros. The airline described the situation as being impacted by an "Olympic Games effect," where travelers opted to avoid one of the world's most frequented tourist destinations during the crucial summer period.
In addition to the revenue loss, Air France-KLM faced an additional financial burden of 50 million euros in total staff bonuses related to the Games. Despite these challenges, the Olympic Games provided the airline with a platform to showcase its operational expertise and capabilities, offering unparalleled visibility for France as a travel destination, noted Chief Executive Benjamin Smith.
Looking ahead, the airline has maintained its forecast for an operating margin greater than eight percent for the 2026-2028 period, an increase from the 5.1 percent margin last year. Smith expressed confidence in achieving medium-term goals through disciplined capital allocation and cost efficiency strategies.