A Big Bet That May Not Be Enough

Airlines and hospitality companies are hurting

Airlines, hotels and restaurants are suffering mightily from travel bans, government closings and more — and some in those industries are warning of dire consequences.

Airlines have warned that their industry faces a mortal threat, citing the U.S. clampdown on travel from Europe, which was extended to Britain and Ireland today. The parent company of British Airways said this morning that it planned to cut its flight capacity for April and May by 75 percent, compared with the same time last year. The C.E.O. of United Airlines, Oscar Munoz, warned that the pain could extend into the summer.

• The Centre for Aviation issued a stark warning: “By the end of May 2020, most airlines in the world will be bankrupt” — unless governments around the world coordinate to help save the industry. Airlines worldwide have been asking for just that.

New York City will close its bars and restaurants, except for takeout and delivery. Data from the reservation service OpenTable noted that the number of bookings on its platform worldwide fell as much as 40 percent year-on-year last week, with bookings in New York City falling 64 percent on Saturday alone.

“This is worse than 9/11,” said John Lam, the C.E.O. of a New York hotel developer.

How other businesses are faring (hint: not well)

The travel and hospitality industries aren’t the only ones in pain, as a drop in consumer spending hits a variety of businesses.

Article source: https://www.nytimes.com/2020/03/16/business/dealbook/coronavirus-federal-reserve.html