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While economists don’t expect a repeat of the type of shutdowns that ravaged industries in 2020, the risks posed by the variant put businesses on edge.
Here are some of the companies that have already warned of the threat of the Delta variant to their bottom line.
Southwest Airlines (LCV) sees a decrease in bookings and an increase in cancellations this month, according to a recent regulatory filing. The airline said this trend “is believed to be due to the recent increase in Covid-19 cases associated with the Delta variant.” This is a change from the company’s forecast in July that it would be profitable in the third and fourth quarters based on strong booking trends for leisure travel.
Airbnb
Airbnb has warned that the Delta variant will disrupt travel. The company saw a drop in demand in July and, on an earnings call, Airbnb CFO David E. Stephenson said this was likely due to the “summer peak” and the Delta variant. “We predict that the impact of Covid-19 and the introduction and spread of new variants of the virus, including the Delta variant, will continue to affect overall travel behavior, including how often and when customers reserve and cancel, ”the company said in its results letter to shareholders.
Disney
The Delta variant makes a dent in Disney (SAY)film and television productions as well as attendance at the park. “We continue to see disruptions in film and television production, as well as live sporting events, depending on local circumstances,” the company said in a recent letter to investors. And when it comes to park attendance, “the biggest noise we’re seeing right now is really about group or convention cancellations,” said Disney CEO Bob Chapek.
Tyson Foods
Tyson Foods (TSN) is struggling, especially with regard to work. The company “has increased wages and created flexible shifts,” but “the Delta variant has been a disruptor,” Tyson Foods President and CEO Donnie King said on a recent call. to the results. “Labor is our biggest problem we face, not only in chicken, but also in our other businesses,” King said. “We were on a good course, and then the Delta variant came along, and we took a step back because of that.”
Norwegian Cruise Line
Fears surrounding the Delta variant have led to a drop in bookings for Norwegian Cruise Line (NCLH). “We saw a slight decline in our net new bookings activity during the month of July, when the Delta variant surfaced,” said Frank J. Del Rio, president and CEO of the company during the month of July. a recent earnings conference call. But he has hope for the future. “We believe this is a transient and temporary phenomenon,” he said.
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