Air France-KLM posted a sharp drop in its net profit for the third quarter, on Thursday, November 7, as travelers avoided Paris during the Olympic Games.
The French-Dutch group reported after-tax profits of €824 million ($887 million), down 13% from the same three-month period last year.
Revenue took a €160 million hit due to “less international inbound traffic to Paris and less travel from France as a consequence of the Olympic Games,” Air France said in an earnings statement.
“The third quarter revealed mixed trends for the Air France-KLM Group,” CEO Benjamin Smith said. “Revenue continued to rise, driven by increased capacity and strong underlying demand. However, operating income was significantly affected by the Paris Olympic Games,” Smith added.
The group also estimated that its tax bill would rise by €280 million if the French government implements a planned new tax on aviation.
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