Pandemic-weary corporations struggled to assess the impact of the new Omicron variant of the coronavirus on Monday, with industries from Hollywood movie studios to airlines and autos awaiting more details to help determine how it might affect their operations and profits.
The World Health Organization warned on Monday the Omicron variant carries a very high global risk of infection surges. Spooked investors wiped roughly $2 trillion off global stocks on Friday, but markets regained some ground on Monday.
Countries have swiftly imposed bans on travel from southern Africa, where the variant was first uncovered. Japan and Israel went even further, announcing bans on all foreign visitors.
Some airlines said they were not heavily changing schedules, but industry sources said big carriers moved swiftly to protect their hubs by curbing passenger travel from southern Africa.
Ryanair Chief Executive Michael O’Leary saw no reason to cancel flights although he was worried about some countries potentially shutting air travel. Lufthansa LHAG.DE, Germany’s flagship airline, said its flights were still well booked.
US President Joe Biden met with chief executives of major retailers and other companies on Monday to discuss how to move goods to shelves as the US holiday shopping season begins in the shadow of Omicron.
Before the meeting, Walmart CEO Doug McMillon cited improvement in the supply chain, noting the retailer had seen a 26 percent increase in shipping containers going through US ports over the past four weeks.
US Commerce Secretary Gina Raimondo said on Monday it was too soon to tell if Omicron will have any impact on global supply chains.
The prospect of a fast-spreading variant has raised fears of a return of the sort of restrictions that shut down a swathe of industries in 2020.
