Air France-KLM SA reported a significant decline in its net profit for the third quarter on Thursday, as the Olympic Games in Paris led to a reduction in travel to the city.
Air France-KLM profit falls on low traffic
The Franco-Dutch airline group posted a profit after tax of €824 million, down 13% from €946 million in the same quarter last year.
The company attributed a €160 million hit to its revenue due to "reduced international inbound traffic to Paris and fewer travelers from France, stemming from the impact of the Olympic Games," according to its earnings statement.
Revenue from ordinary activities rose to €8.98 billion, up from €8.66 billion.
CEO's comment
"The third quarter showed mixed results for the Air France-KLM Group," said CEO Benjamin Smith. "While revenue continued to grow, driven by increased capacity and strong underlying demand, operating income was notably impacted by the Paris Olympics."
The group also warned that its tax burden could increase by €280 million if the French government proceeds with a planned new aviation tax.
