New York (CNN Business) Both American Airlines and United Airlines reported better-than-expected financial results, despite problems brought on by the Omicron surge during the holiday travel period . But both said they expect problems from the variant early this year. American ( AAL ) , the nation's largest airline, lost $921 million in the quarter, excluding special items. That was less than the $1.2 billion forecast by analysts, and less than half than $2.2 billion it lost in the fourth quarter of 2020, before Covid vaccines were widely available. Its revenue reached $9.4 billion, more than double the $4 billion of a year earlier. More impressively, it was down only 17% from the revenue it posted in the fourth quarter of 2019, before the pandemic started hurting air travel. But the company said that the revenue this quarter will be down 20% to 22% compared to the first quarter of 2019, as the surge in Omicron eats into demand for flights. "The … [Read more...] about American and United warn of reduced demand due to Omicron
The world bought more champagne than ever last year
London (CNN Business) Champagne houses are celebrating after sales and exports set new records last year even as pandemic lockdowns forced many bars and restaurants to close. Comité Champagne, a trade association representing more than 16,000 winegrowers and 320 Champagne houses, said Wednesday that France exported a record 180 million bottles of bubbly in 2021, an increase of 38% over the previous year. Global sales of champagne also hit a record €5.5 billion ($6.2 billion). Comité Champagne said that total shipments rose 32% over the previous year to 322 million bottles as people found reasons to celebrate at home. "With tourism and the staging of events still reduced due to the health crisis, there is room to believe that home consumption has taken up the slack," the trade group said in a statement. Read More "Consumers have chosen to entertain themselves at home, compensating for the generally gloomy mood with new moments of … [Read more...] about The world bought more champagne than ever last year
Oscar Mayer’s bologna face mask quickly sells out
New York (CNN Business) If the thought of using a slice of bologna as a moisturizing face mask was tempting, you're out of luck — for now. Oscar Mayer's bologna-inspired face mask sold out less than a day after its release on Amazon . Kraft Heinz blamed the shortage on "unexpected incredibly high demand" and said in a statement that the product would be restocked "over the coming days." It's the number one new release in Amazon's beauty and personal care section. The new product isn't actually a slimy piece of meat. Rather, Kraft Heinz ( KHC ) partnered with Seoul Mamas, a Korean skin care company, to create a "hydrating and restoring hydrogel" mask that promotes skin elasticity, improves hydration and moisture retention. (Oddly, those are not among the typical side benefits associated with ingesting the sodium-filled deli meat.) But the tan-colored masks are not actually edible. There's a large warning on the packaging that says "do not eat … [Read more...] about Oscar Mayer’s bologna face mask quickly sells out
Americans needed to work five weeks more on average to afford a used car in 2021
New York (CNN Business) Wages are not keeping up with inflation . The price of cars has grown significantly faster than earnings, a new analysis by the Anderson Economic Group found. The price of new and used cars increased by 11.8% and 37.3% respectively in December 2021 from December 2020, while wages increased by 4.9% in that same period. Supply chain slowdowns, factory closings, and computer chip shortages coupled with demand sent car prices higher. "Employees need to work three weeks more than they did in December 2020 to afford a typical new vehicle in December 2021," said Dr. Christina Benton, director of market & industry analysis at Anderson Economic Group. Why car prices remain so stubbornly high For used cars, the length of time was greater. The average price of a used car in November 2020 cost $21,708. In November 2021 it rose to $27,569 according to Cox Automotive. Average weekly earnings from that same period were … [Read more...] about Americans needed to work five weeks more on average to afford a used car in 2021
Why car prices remain so stubbornly high
New York (CNN Business) Relief from record high auto prices could be coming soon. But that doesn't mean those prices will go back to where they were before the pandemic. A shortage of necessary parts — primarily computer chips — limited production of new vehicles around the globe. That left car dealers short of supply to meet demand, allowing them to charge a premium for the cars they had available. The average transaction price for a new car was $46,426 in December 2021, according to Edmunds, up $5,850 — or 14% — from a year prior. That increase was primarily due to customers paying more than the listed sticker price — an average of $700 above what manufacturers' were recommending. In December 2020, car buyers paid an average of $2,550 below the sticker price, close to the typical discount buyers traditionally pay. Used car prices ended the year with an average price of nearly $30,000, up about $6,800 — or 29% — from a year earlier. … [Read more...] about Why car prices remain so stubbornly high