World Economic Forecast Raised; Airlines Feel Pain: Virus Update

September 16,2020

The global economic slump ignited by the pandemic won’t be as sharp as previously feared this year, according to the OECD.

The Paris-based institution upgraded its outlook in response to rebounds in activity since lockdowns eased, saying the world economy will probably shrink 4.5%.

Even so, the toll is mounting for airlines. British Airways is expecting to cut as many as 10,000 jobs due to the pandemic and Deutsche Lufthansa AG is preparing for more drastic cutbacks in its workforce and airline fleet after a hoped-for recovery of air traffic fizzled out.

President Donald Trump said a vaccine may be ready within four weeks. JPMorgan Chase & Co. sent some Manhattan traders home after an employee tested positive, highlighting the challenges of New York City’s reopening.