The first clouds in its financial prospects are already seen by companies that either maintain stores in the war-torn region of the Middle East or have commercial transactions.
The Israel-Hamas war – with its innocent victims no doubt before anything else – weighs on all business activities: from advertising to tourism and supply chains.
These early admissions come in the shadow of global concern about an extension of the conflict, while calls for a ceasefire are rejected.
United Airlines announced that its fourth-quarter performance may fluctuate depending on the length of the suspension of flights to Tel Aviv. The company’s updated range for adjusted earnings per share was below analysts’ forecasts.
Travel is changing
United Airlines is one of several carriers, including Delta Air Lines and American Airlines, that have rushed to change schedules against the backdrop of the war.
El Al, the Israeli airline, has announced that it will fly on the Jewish Sabbath for the first time in 40 years to help repatriates from abroad return to the country.
Across the travel industry, the war is causing headaches for company bosses. Boeing has already left open the possibility that the conflict could affect suppliers other than airlines.
About 1.5% of cruise company Royal Caribbean’s capacity in the fourth quarter was destined for Israel. The company also offered free use of its ship Rhapsody of the Seas in the US to help remove Americans from Israel. From the changes in routes and the concession of the ship, the company estimated that it would have an impact of 5 cents per share on its earnings. The company expects adjusted earnings per share for the year to be between $6.58 and $6.63.
The “unpredictable nature” of war
Tech companies were among those that saw the conflict affect workforces, advertising spending and supply chains.
Snap said in its latest financial results announcement that it is seeing a pause in spending from a “large number of primarily brand-oriented advertising campaigns” immediately after the war began. This has weighed on revenue quarter to date.
As the company reported, some of the campaigns that were initially paused have resumed, but others that weren’t stopped earlier are now doing so.
He also believes that the “unpredictable nature” of the war makes it “unwise” to make any predictions about the current quarter’s results.
Tech companies were among those that saw the conflict affect workforces, advertising spending and supply chains.
Snap said in its latest financial results announcement that it is seeing a pause in spending from a “large number of primarily brand-oriented advertising campaigns” immediately after the war began. This has weighed on revenue quarter to date.
As the company reported, some of the campaigns that were initially paused have resumed, but others that weren’t stopped earlier are now doing so.
He also believes that the “unpredictable nature” of the war makes it “unwise” to make any predictions about the current quarter’s results. Defense companies are also on alert as another international conflict erupts.
The war industry does not have time to produce
General Dynamics, the largest producer of US artillery shells, is already “running” the program to increase the production of heavy weapons for the needs of the war in Ukraine. It has now planned a further increase of up to 100,000 units per month, up from 14,000. The situation in Israel will only put upward pressure on this demand.
