PARIS, MAR 6 (V7N) — Air France-KLM reported a significant drop in annual net earnings for 2024, attributing the decline largely to a "Olympic Games effect" that deterred tourists from visiting Paris during the summer season.

The airline's net profit fell to 317 million euros ($342 million), down from 934 million euros in 2023, despite a 4.8 percent increase in revenue to 31.5 billion euros.

According to the company, the lead-up to and duration of the Paris 2024 Olympic Games resulted in a noticeable decrease in travel to the city, a major tourist destination. This downturn in visitor numbers negatively impacted the airline's profitability during the crucial summer months.

In addition to lost revenue, Air France-KLM also incurred 50 million euros in staff bonuses related to the Olympic Games period.

Despite the profit decline, Air France-KLM CEO Benjamin Smith emphasized the positive aspects of the Games, stating, "The Olympic Games provided a unique platform to demonstrate our operational expertise and capabilities and offered unparallelled visibility for France as a destination."

The airline reaffirmed its medium-term financial targets, forecasting an operating margin exceeding eight percent for the 2026-2028 period, a significant increase from the 5.1 percent recorded in 2024.

"We remain confident in achieving our medium-term ambition, with a disciplined approach to capital allocation and cost efficiency," Smith added.

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