Economic toll of virus sinks in, duration remains an unknown

The Dow over the past five days: up 1,293, down 786, up 1,173, down 967. The Dow tumbled 800 points at the opening bell Friday. The VIX, an index known as Wall Street's fear barometer, is hovering at levels not seen since banks began to fall during the financial crisis. The uncertainty and potential economic damage from the coronavirus deepened this week. Sectors that cater to almost any public activity ... movie theaters, business conference organizers, hotels, airlines and amusement parks have lost billions as stockholders flee to investments they perceive as safer, like U.S. Treasury notes, which now payout close to nothing. Following is a brief look at how things are changing in the economy and the workplace today as the outbreak widens.

HEADWINDS: Germany's biggest airline, Lufthansa, says it will cut up to 50% of its flights in the next few weeks, depending on how the virus outbreak develops. It said it had seen a drastic drop in reservations, with all regions now affected. Lufthansa, which also owns Swiss airlines and several smaller regional European carriers, operates over 83,000 flights a month. The airline earlier announced plans to cancel all flights to and from Israel for three weeks after Israeli authorities announced tough restrictions on travelers from several countries.

The airline industry is among the hardest hit since the outbreak, forcing carriers to reassess their near-term financial expectations. An industry group said the spreading coronavirus could cost airlines as much as $113 billion in lost revenue. That figure, released Thursday, is four times the number released just two weeks ago by the The International Air Transport Association, which is imploring governments for assistance.

Declining reservations have rippled outward to commercial aerospace companies. “The impact on airline...