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| Wall Street Rallies for a Second Day as Oil Prices Rise: Live Updates | Wall Street Rallies for a Second Day as Oil Prices Rise: Live Updates |
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| Even as they have substantially reduced service, the largest U.S. airlines are averaging just 17 passengers on domestic flights and 29 on international flights, according to a copy of congressional testimony from the head of Airlines for America, an industry group. | Even as they have substantially reduced service, the largest U.S. airlines are averaging just 17 passengers on domestic flights and 29 on international flights, according to a copy of congressional testimony from the head of Airlines for America, an industry group. |
| At the same time, airlines are collectively burning through about $10 billion a month as they cut costs and await the return of passengers, Nicholas Calio, the industry group’s chief executive, said in the testimony, prepared for a Senate hearing about aviation on Wednesday. | At the same time, airlines are collectively burning through about $10 billion a month as they cut costs and await the return of passengers, Nicholas Calio, the industry group’s chief executive, said in the testimony, prepared for a Senate hearing about aviation on Wednesday. |
| “While the industry will do everything it can to mitigate and address the multitude of challenges, no factual doubt exists that the U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago,” Mr. Calio said in the prepared remarks. | “While the industry will do everything it can to mitigate and address the multitude of challenges, no factual doubt exists that the U.S. airline industry will emerge from this crisis a mere shadow of what it was just three short months ago,” Mr. Calio said in the prepared remarks. |
| The pandemic has virtually wiped out air travel with traffic volumes down 95 percent and more than 3,000 aircraft grounded. More than 100,000 airline employees are working reduced hours or have accepted pay cuts or early retirement, Mr. Calio said. | The pandemic has virtually wiped out air travel with traffic volumes down 95 percent and more than 3,000 aircraft grounded. More than 100,000 airline employees are working reduced hours or have accepted pay cuts or early retirement, Mr. Calio said. |
| Mr. Calio addressed complaints from some consumers that airlines were strongly encouraging them to take vouchers instead of refunds for canceled flights, saying that if the carriers refunded all canceled tickets at once they might have to seek bankruptcy protection. | Mr. Calio addressed complaints from some consumers that airlines were strongly encouraging them to take vouchers instead of refunds for canceled flights, saying that if the carriers refunded all canceled tickets at once they might have to seek bankruptcy protection. |
| He also thanked Congress for injecting nearly $50 billion in grants and loans into the industry in March and said that the funds would help provide stability “throughout a challenging summer, going into a very uncertain fall season.” | He also thanked Congress for injecting nearly $50 billion in grants and loans into the industry in March and said that the funds would help provide stability “throughout a challenging summer, going into a very uncertain fall season.” |
| Airbnb, the home-sharing start-up, laid off around a quarter of its staff, or 1,900 people, on Tuesday as it reels from the global pandemic that has battered the travel industry. | Airbnb, the home-sharing start-up, laid off around a quarter of its staff, or 1,900 people, on Tuesday as it reels from the global pandemic that has battered the travel industry. |
| Airbnb lowered its revenue forecast for this year to be less than half of what it made in 2019 because of the pandemic, Brian Chesky, the company’s chief executive, told employees. Before the layoffs, Airbnb, which is based in San Francisco, had 7,500 employees. | Airbnb lowered its revenue forecast for this year to be less than half of what it made in 2019 because of the pandemic, Brian Chesky, the company’s chief executive, told employees. Before the layoffs, Airbnb, which is based in San Francisco, had 7,500 employees. |
| It was the latest effort to trim costs by the once highflying start-up, which investors have valued at $31 billion. As global travel ground to a halt beginning in February and people canceled their Airbnb stays, the company cut its $800 million marketing budget, arranged new debt facilities and raised $1 billion in new funding. | It was the latest effort to trim costs by the once highflying start-up, which investors have valued at $31 billion. As global travel ground to a halt beginning in February and people canceled their Airbnb stays, the company cut its $800 million marketing budget, arranged new debt facilities and raised $1 billion in new funding. |
| Airbnb has said it planned to go public this year. | Airbnb has said it planned to go public this year. |
| Mr. Chesky said that Airbnb’s business would have to change as a result of the pandemic, with more focus on travel options that are “closer to home, safer, and more affordable.” | Mr. Chesky said that Airbnb’s business would have to change as a result of the pandemic, with more focus on travel options that are “closer to home, safer, and more affordable.” |
| “While we know Airbnb’s business will fully recover, the changes it will undergo are not temporary or short-lived,” he said. | “While we know Airbnb’s business will fully recover, the changes it will undergo are not temporary or short-lived,” he said. |
| Stocks on Wall Street rallied along with oil prices, as investors were encouraged by efforts to reopen economies, as well as by signs from Europe and China that the worst of the coronavirus pandemic may be over in some of the hardest-hit places. | Stocks on Wall Street rallied along with oil prices, as investors were encouraged by efforts to reopen economies, as well as by signs from Europe and China that the worst of the coronavirus pandemic may be over in some of the hardest-hit places. |
| The S&P 500 climbed nearly 1 percent in a second day of gains. | The S&P 500 climbed nearly 1 percent in a second day of gains. |
| Underscoring the optimism across financial markets, oil prices surged on Tuesday. The price of benchmark crude in the United States rose about 20 percent to $24.49 a barrel. Brent crude, the international benchmark, was up about 14 percent at $31. | Underscoring the optimism across financial markets, oil prices surged on Tuesday. The price of benchmark crude in the United States rose about 20 percent to $24.49 a barrel. Brent crude, the international benchmark, was up about 14 percent at $31. |
| The stock market gains — the S&P 500 is up about 30 percent over the past six weeks — have come even as companies report discouraging financial results and warn of the economic damage being caused by the pandemic. For example, on Tuesday, a measure of demand and employment in the services industry showed a sharp slowdown in April to the lowest level since March 2009, as stores and restaurants were shuttered and consumers stayed home. | The stock market gains — the S&P 500 is up about 30 percent over the past six weeks — have come even as companies report discouraging financial results and warn of the economic damage being caused by the pandemic. For example, on Tuesday, a measure of demand and employment in the services industry showed a sharp slowdown in April to the lowest level since March 2009, as stores and restaurants were shuttered and consumers stayed home. |
| Investors have managed to shake off such grim data and other signals that the United States economy is in an unprecedented decline, because it shows what has already happened rather than what might come as stay-at-home orders are lifted and governors gradually move to reopen their economies. | Investors have managed to shake off such grim data and other signals that the United States economy is in an unprecedented decline, because it shows what has already happened rather than what might come as stay-at-home orders are lifted and governors gradually move to reopen their economies. |
| On Monday, Gov. Andrew M. Cuomo of New York laid out a tentative plan for how the state, which has been the hardest hit by the coronavirus outbreak, might begin to restart its economy. | On Monday, Gov. Andrew M. Cuomo of New York laid out a tentative plan for how the state, which has been the hardest hit by the coronavirus outbreak, might begin to restart its economy. |
| Still, even as the overall mood was lifted on Tuesday, investors showed they were concerned about lasting damage. Shares of cruise operators plunged after Norwegian Cruise Line, one of the world’s largest, said that there was “substantial doubt” about its ability to survive the pandemic. And Hertz stock also cratered after the company, which is teetering on bankruptcy, said it had negotiated an extension on a missed payment on the lease for its rental fleet. | Still, even as the overall mood was lifted on Tuesday, investors showed they were concerned about lasting damage. Shares of cruise operators plunged after Norwegian Cruise Line, one of the world’s largest, said that there was “substantial doubt” about its ability to survive the pandemic. And Hertz stock also cratered after the company, which is teetering on bankruptcy, said it had negotiated an extension on a missed payment on the lease for its rental fleet. |
| Last year at this time, the Walt Disney Company was celebrating the record-breaking arrival of “Avengers: Endgame” in theaters. On Tuesday — with theaters closed worldwide, along with theme parks — Disney offered a bleak financial assessment of its businesses. | Last year at this time, the Walt Disney Company was celebrating the record-breaking arrival of “Avengers: Endgame” in theaters. On Tuesday — with theaters closed worldwide, along with theme parks — Disney offered a bleak financial assessment of its businesses. |
| Profit in the most recent quarter, the second in Disney’s fiscal year, totaled $475 million, down 91 percent from $5.43 billion in the same period a year earlier. Excluding one-time items, per-share profit fell to 60 cents from $1.61. | Profit in the most recent quarter, the second in Disney’s fiscal year, totaled $475 million, down 91 percent from $5.43 billion in the same period a year earlier. Excluding one-time items, per-share profit fell to 60 cents from $1.61. |
| Revenue added up to $18 billion, however, an increase of 21 percent that was largely attributable to Disney’s integration of certain 21st Century Fox assets, including FX. | Revenue added up to $18 billion, however, an increase of 21 percent that was largely attributable to Disney’s integration of certain 21st Century Fox assets, including FX. |
| Analysts had been expecting per-share earnings of 88 cents and revenue of $17.8 billion. Since late January, when Shanghai Disneyland closed amid coronavirus fears in China, Disney shares have fallen almost 30 percent. They closed on Tuesday at $101.06. | Analysts had been expecting per-share earnings of 88 cents and revenue of $17.8 billion. Since late January, when Shanghai Disneyland closed amid coronavirus fears in China, Disney shares have fallen almost 30 percent. They closed on Tuesday at $101.06. |
| Because of its size and lack of diversification, Disney has been badly hobbled by the coronavirus pandemic. But the quarter that ended on March 30 was largely spared. Walt Disney World, for instance, was closed for 17 days of the period; the vast resort will be closed for at least 60 days of the current quarter. | Because of its size and lack of diversification, Disney has been badly hobbled by the coronavirus pandemic. But the quarter that ended on March 30 was largely spared. Walt Disney World, for instance, was closed for 17 days of the period; the vast resort will be closed for at least 60 days of the current quarter. |
| In recent days, prominent analysts downgraded Disney. Citing “significant and unrivaled earnings risk for the foreseeable future,” Michael Nathanson of MoffettNathanson moved the company to neutral from buy. | In recent days, prominent analysts downgraded Disney. Citing “significant and unrivaled earnings risk for the foreseeable future,” Michael Nathanson of MoffettNathanson moved the company to neutral from buy. |
| Companies releasing first-quarter results in recent weeks have detailed how the coronavirus pandemic is crushing their business, and many have gone so far as to stop offering forecasts for the rest of the year, claiming the future is just too uncertain. | Companies releasing first-quarter results in recent weeks have detailed how the coronavirus pandemic is crushing their business, and many have gone so far as to stop offering forecasts for the rest of the year, claiming the future is just too uncertain. |
| Still, that didn’t stop some companies from pointing to glimmers of hope. Some senior executives said that business in April was slightly better than in the dark days of March as the virus quickly spread, leading to the deaths of thousands of people in the United States. Others tentatively outlined what a post-pandemic recovery might look like by pointing to how things were going in China, where the pandemic started and has since ebbed. | Still, that didn’t stop some companies from pointing to glimmers of hope. Some senior executives said that business in April was slightly better than in the dark days of March as the virus quickly spread, leading to the deaths of thousands of people in the United States. Others tentatively outlined what a post-pandemic recovery might look like by pointing to how things were going in China, where the pandemic started and has since ebbed. |
| These shreds of optimism may have been an exercise in corporate spin, meant to reassure shareholders — or to tell them something many investors already appear to believe. The stock market has rebounded 27 percent from its March low as investors have become confident that the Federal Reserve and the Treasury Department will prevent the economy from going into a tailspin. | These shreds of optimism may have been an exercise in corporate spin, meant to reassure shareholders — or to tell them something many investors already appear to believe. The stock market has rebounded 27 percent from its March low as investors have become confident that the Federal Reserve and the Treasury Department will prevent the economy from going into a tailspin. |
| Government statistics and independent analysts paint a more dire picture. Economists expect the April unemployment rate to have hit about 16 percent, one of the highest on record, and up from 4.4 percent in March. Most important, the chances of an economic resurgence rest largely on whether the coronavirus pandemic will be contained as lockdowns are relaxed and not flare up again. | Government statistics and independent analysts paint a more dire picture. Economists expect the April unemployment rate to have hit about 16 percent, one of the highest on record, and up from 4.4 percent in March. Most important, the chances of an economic resurgence rest largely on whether the coronavirus pandemic will be contained as lockdowns are relaxed and not flare up again. |
| A union that represents 27,000 United Airlines workers sued the company on Tuesday, accusing it of violating the terms attached to the $5 billion in federal funding it received to pay employees. | A union that represents 27,000 United Airlines workers sued the company on Tuesday, accusing it of violating the terms attached to the $5 billion in federal funding it received to pay employees. |
| The lawsuit centers on a note United management sent to the affected workers on Friday informing them that all full-time passenger service and fleet service employees would be converted to part-time status on May 24. The action is in “full compliance” with the terms of the funding and the union’s collective bargaining agreement, United said. Similar changes were coming for management, it added. | The lawsuit centers on a note United management sent to the affected workers on Friday informing them that all full-time passenger service and fleet service employees would be converted to part-time status on May 24. The action is in “full compliance” with the terms of the funding and the union’s collective bargaining agreement, United said. Similar changes were coming for management, it added. |
| “This is an absolutely egregious decision,” said Mike Klemm, the president of the union, the International Association of Machinists and Aerospace Workers District Lodge 141. | “This is an absolutely egregious decision,” said Mike Klemm, the president of the union, the International Association of Machinists and Aerospace Workers District Lodge 141. |
| In the lawsuit, filed in the United States District Court for Eastern District of New York, the union argues that United’s move would violate the terms of the CARES Act, which provided $25 billion in grants and loans for passenger airlines to pay employees through September. | In the lawsuit, filed in the United States District Court for Eastern District of New York, the union argues that United’s move would violate the terms of the CARES Act, which provided $25 billion in grants and loans for passenger airlines to pay employees through September. |
| That funding came with conditions, including a stipulation that airlines “refrain from conducting involuntary furloughs or reducing pay rates and benefits” during that time, according to text of the law. | That funding came with conditions, including a stipulation that airlines “refrain from conducting involuntary furloughs or reducing pay rates and benefits” during that time, according to text of the law. |
| In a statement, United called the lawsuit “meritless” and said that it continued to pay its employees at “contractually required pay rates.” | |
| Transportation and denser housing have been the two focal points of urban residential development for the last decade, as cities like Seattle and San Francisco try to combat a severe shortage of affordable housing. But some developers worry that the coronavirus pandemic will stop the momentum as social distancing and telecommuting become the norm. | Transportation and denser housing have been the two focal points of urban residential development for the last decade, as cities like Seattle and San Francisco try to combat a severe shortage of affordable housing. But some developers worry that the coronavirus pandemic will stop the momentum as social distancing and telecommuting become the norm. |
| In areas where car commute times continue to climb, and freeways are at capacity, building denser communities along transit lines is seen as a panacea. | In areas where car commute times continue to climb, and freeways are at capacity, building denser communities along transit lines is seen as a panacea. |
| These projects, known as live-leave developments or more formally as transit-oriented developments, can be no-frills projects that focus on housing and getting people in and out fast. Or they can be more centered on amenities, meant to attract not only residents but commercial developers who find the density attractive for restaurants, coffee shops and boutiques. | These projects, known as live-leave developments or more formally as transit-oriented developments, can be no-frills projects that focus on housing and getting people in and out fast. Or they can be more centered on amenities, meant to attract not only residents but commercial developers who find the density attractive for restaurants, coffee shops and boutiques. |
| Most experts say that the demand for transit-oriented development will still exist in some form after the crisis, but that the pandemic will leave a legacy. | Most experts say that the demand for transit-oriented development will still exist in some form after the crisis, but that the pandemic will leave a legacy. |
| Developers are already starting to consider new design plans. Expect more open spaces, broader sidewalks, slimmer roads and promenades in the future. | Developers are already starting to consider new design plans. Expect more open spaces, broader sidewalks, slimmer roads and promenades in the future. |
| Hundreds of Wendy’s restaurants have run out of hamburgers. Kroger, the largest supermarket chain in the United States, is limiting the amount of ground beef and pork that customers can buy at some stores. And Costco, where shoppers typically buy in bulk, has placed a three-product cap on purchases of beef, poultry and pork. | Hundreds of Wendy’s restaurants have run out of hamburgers. Kroger, the largest supermarket chain in the United States, is limiting the amount of ground beef and pork that customers can buy at some stores. And Costco, where shoppers typically buy in bulk, has placed a three-product cap on purchases of beef, poultry and pork. |
| Over the last month, dozens of meatpacking plants across the country have shut down because of coronavirus outbreaks, raising concerns about the country’s meat supply. Now, the impact of those disruptions is reaching customers at grocery stores and fast food drive-throughs, where certain types of meat, like hamburgers, are harder to find. | Over the last month, dozens of meatpacking plants across the country have shut down because of coronavirus outbreaks, raising concerns about the country’s meat supply. Now, the impact of those disruptions is reaching customers at grocery stores and fast food drive-throughs, where certain types of meat, like hamburgers, are harder to find. |
| On Monday, nearly one in five Wendy’s restaurants — a total of 1,043 locations — were sold out of beef products, including burgers, according to analysis by the financial firm Stephens, which examined the online menu at every Wendy’s in the United States. | On Monday, nearly one in five Wendy’s restaurants — a total of 1,043 locations — were sold out of beef products, including burgers, according to analysis by the financial firm Stephens, which examined the online menu at every Wendy’s in the United States. |
| More meatpacking plants have announced infections and shut downs this week. A Tyson Foods pork plant and a Cargill beef plant in Nebraska announced temporary closures after a surge in coronavirus infections. More than 100 workers tested positive for the coronavirus at a Seaboard Foods pork processing plant in Oklahoma, though the facility remains open. In a call with investors on Monday, Tyson executives said that more meatpacking plants were likely to shut down for cleaning as the virus continues to spread. | More meatpacking plants have announced infections and shut downs this week. A Tyson Foods pork plant and a Cargill beef plant in Nebraska announced temporary closures after a surge in coronavirus infections. More than 100 workers tested positive for the coronavirus at a Seaboard Foods pork processing plant in Oklahoma, though the facility remains open. In a call with investors on Monday, Tyson executives said that more meatpacking plants were likely to shut down for cleaning as the virus continues to spread. |
| An employee at an Amazon warehouse on Staten Island has died after contracting the coronavirus, the company said on Tuesday, weeks after the building was the scene of a protest over what workers said were inadequate safety precautions. The unidentified employee, who was in his late 60s, was last at work at the warehouse on April 5, the company said. He was confirmed to have the virus six days later and had been in quarantine since then, the company said. | An employee at an Amazon warehouse on Staten Island has died after contracting the coronavirus, the company said on Tuesday, weeks after the building was the scene of a protest over what workers said were inadequate safety precautions. The unidentified employee, who was in his late 60s, was last at work at the warehouse on April 5, the company said. He was confirmed to have the virus six days later and had been in quarantine since then, the company said. |
| Hertz, the century-old car rental company, narrowly averted an impending crisis Monday after successfully negotiating with its lenders over a missed payment on the lease for its rental fleet, according to a securities filing. The company now has less than three weeks — until May 22 — to come up with a plan to pay them back and continue to meet its financial obligations. | Hertz, the century-old car rental company, narrowly averted an impending crisis Monday after successfully negotiating with its lenders over a missed payment on the lease for its rental fleet, according to a securities filing. The company now has less than three weeks — until May 22 — to come up with a plan to pay them back and continue to meet its financial obligations. |
| Norwegian Cruise Line, one of the world’s largest cruise companies, said on Tuesday that there was “substantial doubt” about its ability to survive the coronavirus pandemic. Norwegian acknowledged the dire situation in a securities filing announcing that it was seeking $650 million in new financing. | Norwegian Cruise Line, one of the world’s largest cruise companies, said on Tuesday that there was “substantial doubt” about its ability to survive the coronavirus pandemic. Norwegian acknowledged the dire situation in a securities filing announcing that it was seeking $650 million in new financing. |
| NBCUniversal will cut salaries for higher-paid employees, its chief executive, Jeff Shell, announced in a companywide email Tuesday. The media giant will roll back merit increases, typically 3 percent, for those who make more than $100,000, starting in June. The management team, about 17 people, including Mr. Shell and Cesar Conde, the newly appointed head of news, will take a 20 percent pay cut. Employees at its theme parks division have already seen pay cuts. Company leaders haven’t decided how long the cuts will remain in place. | NBCUniversal will cut salaries for higher-paid employees, its chief executive, Jeff Shell, announced in a companywide email Tuesday. The media giant will roll back merit increases, typically 3 percent, for those who make more than $100,000, starting in June. The management team, about 17 people, including Mr. Shell and Cesar Conde, the newly appointed head of news, will take a 20 percent pay cut. Employees at its theme parks division have already seen pay cuts. Company leaders haven’t decided how long the cuts will remain in place. |
| Reporting was contributed by Matt Stevens. Jim Tankersley, Davy Alba, Edmund Lee, David Yaffe-Bellany, Niraj Chokshi, Michael Corkery, Alan Rappeport, Jack Ewing, Erin Griffith, Jeanna Smialek, Ben Dooley, Knvul Sheikh, Mohammed Hadi, Sapna Maheshwari, Ivan Penn, Matt Richtel, Carlos Tejada, Daniel Victor, Katie Robertson and Kevin Granville. | Reporting was contributed by Matt Stevens. Jim Tankersley, Davy Alba, Edmund Lee, David Yaffe-Bellany, Niraj Chokshi, Michael Corkery, Alan Rappeport, Jack Ewing, Erin Griffith, Jeanna Smialek, Ben Dooley, Knvul Sheikh, Mohammed Hadi, Sapna Maheshwari, Ivan Penn, Matt Richtel, Carlos Tejada, Daniel Victor, Katie Robertson and Kevin Granville. |