Hong Kong’s omicron outbreak is dealing a double whammy to businesses.
Not only will new social distancing curbs crimp revenue for retailers and restaurants, a slashing of flights they rely on to bring everything from Australian cherries to wagyu beef into the financial hub is set to raise costs and boost inflation.
Cathay Pacific Airways Ltd., the city’s most connected airline, has canceled hundreds of flights. Cargo capacity could drop below one-fifth of pre-pandemic levels. Logistics costs may surge by 40% within three weeks. Importers expect the price of fruit to rise by 10%.