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COVID-19 variant disrupts holiday travel but not shopping

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The latest COVID-19 variant is upending holiday plans for tens of thousands of travelers — but it didn’t do much damage to holiday shopping.

Airlines canceled hundreds more flights Sunday, citing staffing problems tied to COVID-19, as the nation’s travel woes extended beyond Christmas, with no clear indication when normal schedules would resume.

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But shoppers shrugged off the omicron variant, and holiday sales rose at the fastest pace in 17 years, according to one spending measure.

Omicron is likely to slow the economy’s unexpectedly strong rebound from last year’s coronavirus recession by disrupting travel and discouraging some consumers from venturing out. The variant could also add more heat to already simmering inflation by forcing shutdowns at factories and ports, delaying shipments and driving up prices.

“A full reopening of the US economy will be delayed yet again,’’ said Robin Brooks, chief economist at the Institute of International Finance, a trade group of financial firms.
But it’s not yet clear how deep the hurt will go or how long it will last.

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For now, the variant is playing havoc with travel. More than 1,100 flights entering, leaving or flying within the US were called off, according to the flight-tracking website FlightAware. That figure was up from nearly 1,000 on Saturday. About 130 flights were already canceled for Monday.

Delta, United, JetBlue and American have blamed omicron for staffing shortages that forced cancellations.

“This was unexpected,” United spokesperson Maddie King said of the variant’s effect on staffing.

Globally, airlines scrapped more than 2,700 flights as of Sunday evening, nearing the more than 2,800 cancellations the day before, FlightAware’s data showed. The site does not say why flights were canceled.

JetBlue scrapped 11 percent of its flights Sunday. Delta and United both canceled 5 percent, according to FlightAware. The three airlines canceled more than 10 percent of their scheduled flights on Saturday.

Mason Herlocker waited Sunday at Newark Liberty International Airport in New Jersey to pick up his girlfriend, who was coming in from Paris. Her flight was delayed for four hours.

It took her five hours to get a COVID-19 test the day before to enter the US. She’s visiting for three weeks, and Herlocker said he fears that she will get stuck here if she doesn’t have a negative test result before trying to return home to France.

Worried about his parents getting sick, Herlocker recently got a booster shot and encouraged others to get theirs, too. He said he doesn’t believe an end to the pandemic is in sight.

“I’m of the opinion that this is the new normal,” Herlocker said. “I don’t foresee (the virus) going away any time soon.”

Aneesh Abhyankar flew in from Atlanta on Sunday and was waiting for a flight to India.
Neither of his flights was delayed or canceled, but he said news of the omicron variant encouraged him to push up his travels to ensure he could get to his destination. He said face masks and vaccines are likely to become ingrained in everyday life for the foreseeable future.

“I don’t think we have much to worry about if we take all the precautions, and I think we will be entering a situation where we just live with” the virus, he said.

Despite omicron, American consumers appeared undaunted. Mastercard SpendingPulse, which tracks all kinds of payments, including cash and debit cards, reported Sunday that holiday sales had risen 8.5 percent from a year earlier, the biggest annual gain in 17 years. Mastercard SpendingPulse had expected an 8.8 percent increase.

The results, which covered Nov. 1 through Dec. 24, were fueled by purchases of clothing and jewelry. Holiday sales were up 10.7 percent compared with the pre-pandemic 2019 holiday period.

After omicron hit, some consumers shifted their spending to e-commerce, but sales stayed strong.

“I feel really good about how the season played out,’’ said Steve Sadove, senior adviser to Mastercard and former CEO of Saks Inc. “When people feel a little bit uncomfortable, you’ll see a little bit of a pickup in online and a little bit of a slowdown in store performance.’’

Sadove said consumers are “learning to live” with what COVID-19 throws at them.

“You’re coming out of 2021 with quite a bit of consumer momentum,’’ he said.
Also Sunday, the nation’s top infectious disease doctor acknowledged that he was frustrated with the limited supply of COVID-19 tests.

Demand for tests has risen amid the omicron surge. “We’ve obviously got to do better,” Dr. Anthony Fauci said an interview that aired Sunday on ABC’s “This Week.”

“I think things will improve greatly as we get into January, but that doesn’t help us today and tomorrow,” Fauci said.

Fauci said he was pleased with evidence that omicron causes less severe illness for most people. But he warned against complacency because the rapid spread of the disease could “override a real diminution in severity,” because so many more people could get infected.
There are still many questions about how bad the omicron surge will be in the US, Johns Hopkins infectious disease specialist Dr. Amesh Adalja said Sunday.

“There are multiple signals showing decreased severity. But the problem is, we have many high-risk individuals that are not vaccinated in some parts of the country. And there are hospitals in those regions that already are dealing with a lot of delta patients,” Adalja said.

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Moderna begins testing omicron-matched COVID-19 shots in adults

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Moderna has begun testing an omicron-specific COVID-19 booster in healthy adults.

The company announced Wednesday that the first participant had received a dose. Earlier this week, competitor Pfizer began a similar study of its own reformulated shots.

For more coronavirus news, visit our dedicated page.

It’s not clear whether global health authorities will order a change to the vaccine recipe in the wake of the hugely contagious omicron variant. The original vaccines still offer good protection against death and severe illness. Studies in the US and elsewhere show a booster dose strengthens that protection and improves the chances of avoiding even a milder infection.

Moderna pointed to a small study published in the New England Journal of Medicine on Wednesday that showed antibodies able to target omicron persisted for six months after a booster dose, although the levels were dropping.

Moderna’s new study will enroll about 600 people who already have received either two doses of the company’s original shots or two plus a booster dose. All the volunteers will receive a dose of the experimental omicron-matched version.

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Abbas rival Dahlan delivers one mln COVID-19 vaccine doses to Gaza

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One million doses of coronavirus vaccine arrived in Gaza from the United Arab Emirates on Wednesday, the latest donation facilitated by an exiled rival of Palestinian president Mahmud Abbas.

Mohammed Dahlan, a Gaza native now based in the UAE capital Abu Dhabi, was once a top Palestinian Authority official who served as Abbas’s security chief in the territory before its takeover by the Islamist Hamas movement in 2007.

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Gaza health ministry spokesman Mahmud Hammad told journalists that the consignment of one million doses of the Russian-made Sputnik V vaccine marked the largest single shipment of COVID-19 vaccines to the Israeli-blockaded territory.

The vaccines were delivered through Gaza’s Rafah crossing with Egypt, the only one not controlled by Israel.

The same route was used for previous shipments organized by Dahlan, who has increasingly sought to position himself as a benefactor for the Palestinian people.

Dahlan had been expected to emerge as a key player from Palestinian elections scheduled for last year but the polls were postponed indefinitely by Abbas in a move that also infuriated Hamas.

The ministry’s head of preventive medicine, Magdy Duhair, warned that Gaza’s health system was under increased strain due to the fast-spreading omicron variant of the coronavirus.

While Gaza’s beleaguered medical system has struggled at times during the pandemic, coronavirus transmission has been limited by the tight controls Israel and Egypt enforce on travel in and out of the coastal enclave.

Gaza, which has a population of roughly 2.3 million, has recorded 196,578 COVID-19 cases and 1,744 deaths. So far, 578,000 residents have received two doses of a vaccine.

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Saudi Arabia records 4,526 COVID-19 cases, three deaths in 24 hours

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Saudi Arabia has recorded another minor dip in COVID-19 transmissions with 4,526 cases and three virus-related deaths in the last 24 hours, according to the Kingdom’s Ministry of Health.

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In that time, 5,772 recoveries were also recorded.

There have now been 666,259 COVID-19 infections and 8,927 deaths in Saudi Arabia since the beginning of the pandemic.

Case numbers have risen sharply in January amid global reports of the omicron variant spreading.

Saudi Arabia detected its first case of the more transmissible variant in early December.

It was thought to have been transmitted by a traveler from an undisclosed north African country.

Daily case numbers reached an all-time high of 5,928 on January 19.

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Saudi Arabia sees slight increase with 4,838 new COVID-19 cases

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