Holiday travelers continued to experience widespread flight cancellations as the omicron variant causes airline staff to call in sick.

According to FlightAware, which tracks delays and cancellations, there have been 2,395 total flight cancellations around the world Monday with 869 of those impacting flights “within, into, or out of the United States.” 

Some 6,342 flights have been delayed around the world with 1,602 delays impacting U.S flights. 

Over the Christmas weekend, thousands more flights were canceled, leaving travelers stranded. 

“We apologize to our customers for the delay in their holiday travel plans,” Delta said in a statement. “Delta people are working hard to get them to where they need to be as quickly and as safely as possible on the next available flight.” 

The holiday season is the busiest time of year for air travel. The U.S. Transportation Security Administration said 2.19 million passengers were screened on Dec. 23, and the previous day saw more travelers than the same day in 2019. 

When things might return to normal is unclear. 

Delta and JetBlue have reportedly asked the U.S. Centers for Disease Control and Prevention to reduce quarantine times for their vaccinated employees. Some airlines are also reportedly offering bonuses to work more to cover for sick employees. 

Amid the scramble, some are expressing concern. 

“We’ve got to make sure employees don’t feel pressured to come to work when they’ve been exposed to COVID or they think they may have the symptoms,” Captain Dennis Tajer, a spokesperson for the Allied Pilots Association, told ABC News. 
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U.S. airlines called off hundreds of flights for a third day in a row on Sunday as surging COVID-19 infections due to the highly transmissible Omicron variant grounded crews and forced tens of thousands of Christmas weekend travelers to change their plans. 

Commercial airlines canceled 656 flights within, into or out of the United States on Sunday, slightly down from nearly 1,000 from Christmas Day and nearly 700 on Christmas Eve, according to a tally on flight-tracking website FlightAware.com. 

Further cancellations were likely, and more than 920 flights were delayed. 

The Christmas holidays are typically a peak time for air travel, but the rapid spread of the Omicron variant has led to a sharp increase in COVID-19 infections, forcing airlines to cancel flights with pilots and crew needing to be quarantined. 

Delta Air Lines Inc expected more than 300 of its flights to be canceled on Sunday. 

“Winter weather in portions of the U.S. and the Omicron variant continued to impact Delta’s holiday weekend flight schedule,” a Delta spokesperson said in an emailed statement, adding that the company was working to “reroute and substitute aircraft and crews to get customers where they need to be as quickly and safely as possible.” 

When that was not possible, it was coordinating with impacted customers on the next available flight, the spokesperson said. 

Globally, FlightAware data showed that nearly 2,150 flights were called off on Sunday and another 5,798 were delayed, as of 9.40 a.m. EST (1440 GMT). 

Omicron was first detected in November and now accounts for nearly three-quarters of U.S. cases and as many as 90% in some areas, such as the Eastern Seaboard. The average number of new U.S. coronavirus cases has risen 45% to 179,000 per day over the past week, according to a Reuters tally. 

While recent research suggests Omicron produces milder illness and a lower rate of hospitalizations than previous variants of COVID-19, health officials have maintained a cautious note about the outlook.
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Investors are closely watching the latest news on the rapidly spreading Omicron variant for signs of how much the virus could impact the U.S. economy and earnings as the market heads into what has historically been a strong time of year for equities.

Overall, the S&P 500 is slightly ahead since Nov. 24, prior to news of the variant hitting markets. It marked a record-high close on Thursday, as encouraging developments gave investors more ease about the economic impact of the variant.

“The market is extremely reactionary now and every little bit of news has a huge impact,” said George Young, a portfolio manager at Villere & Co. Young is planning on taking advantage of any Omicron-induced volatility to add to stocks that rely on tourism and travel such as bank company First Hawaiian Inc . Shares of the company are up 14.4% for the year to date.

The Omicron variant is causing infections to double in 1.5 to 3 days, according to the World Health Organization. The variant now accounts for 73% of all new U.S. cases, up from less than 1% at the beginning of the month.

Still, questions about Omicron’s virulence have made investors less pessimistic than the original reaction. The S&P 500 closed down 2.3% on Nov. 26 after the variant was discovered, on fears of fresh economic lockdowns.

A South African study offered hope about the severity of Omicron and the trend of COVID-19 infections on Wednesday. Shares of vaccine makers slumped in December as investors expect the Omicron variant’s impact to be limited based on recent data.

That bodes well for what is known in the market as a Santa Claus rally. Historically, U.S. stocks have risen during the last five trading days of December and the first two days of January in 56 out of 75 years since 1945, according to data from CFRA Research. This year, the time period starts on Dec. 27. The average Santa Claus rally has boosted the S&P 500 by 1.3% since 1969, according to the Stock Trader’s Almanac.

It is unclear to what extent Wall Street analysts expect Omicron to affect earnings and the economy. Estimated 2022 S&P 500 earnings growth was at 8.3% as of Friday, compared with 8.0% at the start of December, according to Refinitiv data.

Goldman Sachs cut its estimate for U.S. GDP growth to 3.8% from 4.2% due to the uncertainty of the impact of the Omicron wave.

Possible Volatility

While there will likely be some economic impact from Omicron, U.S. consumer spending will likely remain strong, said Cliff Hodge, chief investment officer for Cornerstone Wealth.

He is focused on any signs that Senator Joe Manchin could reach an agreement to support President Joe Biden’s signature $1.75 trillion Build Back Better climate and social spending bill. Manchin, who would provide one of the key votes to pass the bill in a divided Senate, said on Sunday that he could not support the bill in its current form. Senate Majority Leader Chuck Schumer said that the Senate will vote on the bill in early January.

“We need a little bit of good news whether on the Manchin front or Omicron to get a rally going,” Hodge said. “We are fully invested and anticipate a little bit of a relief rally into January.”

The week ahead will be light on economic data, with the release of the S&P Case-Shiller U.S. home price index on Tuesday among the few notable data points.

The lack of new reads of the strength of the economy at a time when coronavirus case counts are rising may leave the stock market more volatile through the end of the year, said Dana D’Auria, co-chief investment officer of Envestnet PMC.

“The market has gotten pretty good at pricing in and leading off from what we are learning about on the health side,” she said.

Should Omicron cases continue to spike or there are signs that economic restrictions could be reimposed, investors will likely rebalance into the shares of giant technology companies such as Apple Inc that have emerged as defensive plays given their large cash positions and revenue growth as a result of remote work, D’Auria said.

“At the end of the day if Omicron really causes problems I would be ready for a more volatile market” well into the new year, she said.
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Airlines continued to cancel hundreds of flights Saturday because of staffing issues tied to COVID-19, disrupting holiday celebrations during one of the busiest travel times of the year.

FlightAware, a flight-tracking website, noted nearly 1,000 canceled flights entering, leaving or inside the U.S. Saturday, up from 690 flights scrapped on Friday. Over 250 more flights were already canceled for Sunday. FlightAware does not say why flights are canceled.

Delta, United and JetBlue had all said Friday that the omicron variant was causing staffing problems leading to flight cancellations. United spokesperson Maddie King said staffing shortages were still causing cancellations and it was unclear when normal operations would return. “This was unexpected,” she said of omicron’s impact on staffing. Delta and JetBlue did not respond to questions Saturday.

According to FlightAware, the three airlines canceled more than 10% of their scheduled Saturday flights. American Airlines also canceled more than 90 flights Saturday, about 3% of its schedule, according to FlightAware. American spokesperson Derek Walls said the cancellations stemmed from “COVID-related sick calls.” European and Australian airlines have also canceled holiday-season flights because of staffing problems tied to COVID-19. 

For travelers, that meant time away from loved ones, chaos at the airport and the stress of spending hours standing in line and on the phone trying to rebook flights. Peter Bockman, a retired actor, and his daughter Malaika, a college student, were supposed to be in Senegal on Saturday celebrating with relatives they hadn’t seen in a decade. But their 7:30 p.m. flight Friday from New York to Dakar was canceled, which they found out only when they got to the airport. They were there until 2 a.m. trying to rebook a flight.

“Nobody was organizing, trying to sort things out,” he said, faulting Delta for a lack of customer service. “Nobody explained anything. Not even, ‘Oh we’re so sorry, this is what we can do to help you.'” 

Their new flight, for Monday evening, has a layover in Paris, and they are worried there will be issues with that one as well. They have already missed a big family get-together that was scheduled for Saturday.

FlightAware’s data shows airlines scrapped more than 6,000 flights globally for Friday, Saturday and Sunday combined as of Saturday evening, with almost one-third of affected flights to, from or within the United States. Chinese airlines made up many of the canceled flights, and Chinese airports topped FlightAware’s lists of those with most cancellations. It wasn’t clear why. China has strict pandemic control measures, including frequent lockdowns, and the government set one on Xi’an, a city of 13 million people, earlier this week. 

Air China, China Eastern and Lion Air, an Indonesian airline with many canceled flights, did not respond to emails Saturday. 

Flight delays and cancellations tied to staffing shortages have been a regular problem for the U.S. airline industry this year. Airlines encouraged workers to quit in 2020, when air travel collapsed, and were caught short-staffed this year as travel recovered. 

To ease staffing shortages, countries including Spain and the U.K. have reduced the length of COVID-19 quarantines by letting people return to work sooner after testing positive or being exposed to the virus. 

Delta CEO Ed Bastian was among those who have called on the Biden administration to take similar steps or risk further disruptions in air travel. On Thursday, the U.S. shortened COVID-19 isolation rules for health care workers only.
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Kenya’s government recently said it will pay more than $800 million of the debt owed by the national carrier, Kenya Airways, and give it nearly half-a-billion dollars in budget support over the next two years.  Economists disagree on whether the government is making the right move.  

The government recently said it will support the airways for two years to remain competitive.

The government recently requested $800 million from the International Monetary Fund to fund the bailout.  The state owns 49 percent of the airline.

Samuel Nyandemo is a lecturer at the University of Nairobi, teaching economics. He says the government has no business supporting money-losing companies.

“It’s not the work of the government to subsidize non-profit making entities,” Nyandemo said. “Instead, the government should try to privatize such kinds of bodies that are not able to stand on their own feet. So, it’s defeatist for the government to borrow money and start subsidizing a body like Kenya Airways which has monopoly power in the market and this is just because of mismanagement.”

In September, Kenya Airways Chief Executive Officer Allan Kilavuka said the airline suffered a net loss of $100 million between January and June. The company lost $130 million in the same period in 2020.

The airline has been effected by COVID-19-related travel restrictions and flight cancellations.

James Shikwati, a Nairobi-based economist, says the financial hardship caused by the pandemic means the airline is qualified to receive support from the government.

“I think the flexibility of the challenges caused by COVID we would say it makes sense if you keep it alive using all the instruments available that can ensure it goes back to profitability,” Shikwati said. 

Kenya Airways’ financial challenges began in 2012.  

Nyandemo says the carrier is being mismanaged.  

“Kenya Airways has over-employed staff. They are overpaying pilots,” Nyandemo said. “All this has led to inefficiencies in terms of operational cost and that’s why the Kenya airways is not able to break even.  Besides that, there is gross mismanagement.”

The Kenyan government has been pushing for the nationalization of the airline but parliament has so far blocked the action.

The International Monetary Fund said in a statement the government has canceled a plan to fully nationalize the airline.

Shikwati says the airline can be profitable if managed well.

“Kenya Airways and Ethiopian airlines have always been competing,” Shikwati said. “Kenya, in the 80s, chose the path of privatizing as a way to make the airline competitive. I think Ethiopia at that time picked on being national heavy government-supported. So now you compare with the realities going on, creating a mixed bag in my view is not a problem. It should be something that can make the airline remain competitive.”  

Some economists are calling on the airline to restructure its operations, downsize its staff, negotiate new leases and contracts and use the government’s support and authority. 
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Торги на міжбанківському валютному ринку завершуються на рівні 27 гривень 24–26 копійок за долар
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