Jeju Airlines shares fall to record low after fatal plane crash By Reuters

Written by Jihoon Lee and Yoon Ah Moon

SEOUL (Reuters) – Shares of South Korean airline Jeju Air hit all-time lows on Monday after the country’s worst plane crash killed 179 people.

Jeju Air shares fell 8.4% by 0058 GMT, after falling as much as 15.7% earlier in the session to 6,920 won, the lowest level since its listing in 2015.

Shares of AK Holdings, Jeju Air’s holding company, fell as much as 12% to their lowest levels in 16 years.

Sunday’s accident at Muan International Airport was the first fatal flight for Jeju Airlines, a low-cost airline founded in 2005 and the country’s third-largest airline by number of passengers.

Acting South Korean President Choi Sang-mok on Monday ordered an emergency safety inspection of the country’s entire airline operating system once recovery work from the Jeju Air plane crash is completed.

Among other budget airlines, Air Busan’s stock rose more than 15%. Jane Eyre (KS:) and T’way Air after rising as much as 5.4% and 7.3%, respectively.

The shares of the two main airlines in South Korea, Korean Air, fell by 1.3%, and Asiana Airlines fell by 0.8%.

“It will take time to assess the cause of the accident, but consumer sentiment will inevitably be damaged, as credibility is important for low-cost airlines whose seats and services are not much different from each other,” said Yang Seung-yeon, an analyst at the company. Eugene stock investment.

“In terms of overall travel demand, there may be some cancellations in the short term, but that is unlikely to weaken structurally.”

Officials said many of the victims of the plane crash, the worst in the country’s history, were apparently returning from vacation for the holidays.

Travel agency shares also fell, with Hantour Service shares falling as much as 7% and Very Good Tour shares falling as much as 11%.