Air France-KLM warned Monday that the Olympic Games would lead to a drop in revenues of up to 180 million euros, due to a decline in travel to Paris over the summer.
The airline group had been hoping for a boost to its brand image and bottom line from the Games, but there have been concerns that the Games may keep other travellers from visiting Paris, which is a major tourist destination during the summer.
"International markets show a significant avoidance of Paris," the airline said in a statement.
"Travel between the city and other destinations is also below the usual June-August average as residents in France seem to be postponing their holidays until after the Olympic Games or considering alternative travel plans," it added.
While the French aviation trade association Fnam said it couldn't confirm tourists were avoiding Paris, Air France-KLM's statement is in line with the latest data from the Paris tourism office.
It recently forecast a 14.8 percent drop in foreign arrivals in July compared to last year and a 16.4 percent drop from 2019.
Meanwhile, hotel occupancy in the first 10 days of July is on average 60 percent, a drop of around 10 percentage points from last year.