PREVIEW

Delta Faces $100 Million Loss as Travelers Avoid Paris During Olympics. Delta Air Lines is facing a $100 million financial hit this summer as travelers avoid Paris, instead choosing other destinations, says CEO Ed Bastian. Bastian reports that except for those attending the Olympics, very few tourists are booking flights to Paris, affecting Delta’s revenue during a typically busy travel season. Delta’s third-quarter profit and revenue forecasts have fallen short of Wall Street expectations, partly due to an oversupply of flights and reduced demand for Paris, reports NBC News. With the most U.S. flights to Paris and a joint venture with Air France, Delta holds approximately 70% market share in nonstop service between the U.S. and France. On July 1, Air France-KLM forecast a revenue loss of up to €180 million for June through August due to the Olympic Games impacting travel patterns. International markets show a significant avoidance of Paris, with many French residents postponing holidays until after the Olympics, reports Delta. Bastian predicts strong travel demand for Paris after the Olympics, despite the current hesitation from travelers during the games. Hotel-data firm STR projects that upscale hotels in Paris will see revenue per available room soar by up to 45% in July and August, deterring mid-summer travel. Delta’s President Glen Hauenstein notes a shift in travel trends, with more people planning vacations in September and October to avoid the summer crowds and heat. Delta is experiencing a travel boom to Japan, driven by a favorable exchange rate for U.S. tourists, making Japan a more affordable and attractive destination. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT