Several companies in the United States are reportedly grappling to recover especially amidst the widespread outbreak of the Omicron variant, ongoing supply chain crisis, and labor shortage.
Although the roll-out of vaccines and the easing restrictions had raised hopes of a potential boon and recovery from the monetary repercussions of the pandemic, the recent spike in Omicron cases appears to be adding to the shock wave.
Giant corporations such as American Eagle, United Airlines, Lululemon Athletica, and Abercrombie & Fitch among others are allegedly struggling to meet sales targets as daily cases exceed 1.35 million for the first time in the United States. This has also resulted in reduced customer traffic owing to limited store operating hours.
Notably, the country has witnessed record numbers not only in terms of daily cases but also in hospitalization numbers, which hit an all-time high of 136,604. Meanwhile, mortality numbers have been averaging at around 1,700 people per day, putting significant pressure on healthcare infrastructure.
Even the slow recovery of the travel industry has been jolted once again by flight cancellations and staffing issues, particularly during the critical peak holiday season.
Similarly, the airline sector has succumbed to the virus outbreak, with behemoths such as American Airlines reducing flight schedules after nearly 3000 of its employees tested positive for COVID-19. To sustain losses and continue operations in the future, the airliner is planning to increase the cost per available seat mile by 13-14%.
However, despite the unfavorable circumstances, some companies, such as those in the pharmaceutical industry, have been able to weather the storm and generate profits. As per sources, organizations such as Abbott Laboratories and CVS Health Corp elevated their profit projections in anticipation of increased demand for Coronavirus vaccines and over-the-counter (OTC) testing.
Experts believe that the next few months will be highly volatile due to the looming uncertainty, with the first quarter of 2022 already dealing with the fallout from the bumpy end of the last year’s fourth quarter.
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