Other airlines have taken a similar approach. United Airlines had never limited the number of passengers on its flights. United and American have said that they will warn customers when they are on a fully booked flights and let them switch to a less-packed flight.
By comparison, Southwest Airlines and Delta Air Lines have said that they will continue to cap the number of passengers on their flights through September. Southwest, which does not assign seats, is limiting flights at a level that would allow each middle seat to remain empty, though it will allow passengers to sit where they want. Delta is capping main cabins at 60 percent and first class cabins at 50 percent, while also blocking middle seats. —Niraj Chokshi
Markets are failing to grasp the threats to global growth.
Markets have become too complacent as risks from the coronavirus pandemic threaten global prosperity, the Bank for International Settlements, which supports the world’s central banks, warned in its annual report.
In a nod toward the recent disconnect between financial markets and the economy, the group said high stock prices and the lower premium on corporate debt suggested a divergence from the reality of economic weakness.
“Financial markets may have become too complacent — given that we are still at an early stage of the crisis and its fallout,” Agustín Carstens, the group’s general manager, warned in a speech tied to the release. He pointed out that the path of the virus and its effects on businesses still posed risks.
“Importantly, the shock to solvency is still to be fully felt,” Mr. Carstens said, warning that banks, which have extended loans to companies and consumers, will find themselves on the hook as businesses crash, taking workers down with them. That situation, the group warned, could be “triggered by cliff effects as initial fiscal support runs out and payment moratoriums expire.”
Central banks responded rapidly as businesses and individuals scrambled to sell assets and raise cash, and the real-world crisis began to infect financial markets — making it hard for corporations to issue debt and difficult to trade even U.S. Treasury securities, which are usually highly liquid. Monetary policymakers bought huge sums of bonds and stepped into new markets as lenders of last resort, intent on staving off a full-fledged meltdown.