Jeju Air Shares Hit Record Low After Deadly Crash

By Jihoon Lee and Youn Ah Moon
SEOUL (Reuters) – Shares of South Korean budget carrier Jeju Air hit their lowest on record on Monday, following the country's worst air disaster that killed 179 people.

Jeju Air shares fell by 8.4% as of 0058 GMT, having dropped as much as 15.7% earlier to 6,920 won, marking the lowest point since their listing in 2015.
Shares of AK Holdings, Jeju Air's parent company, experienced a 12% decline, reaching a 16-year low.

The tragic crash occurred on Sunday at Muan International Airport and is notably the first fatal incident for Jeju Air, which was founded in 2005 and is South Korea's third-largest carrier by passenger numbers.

In response to the disaster, South Korea's acting President Choi Sang-mok mandated an emergency safety inspection of the entire airline operation system, which will commence once the recovery from the crash is completed.

Among other budget airlines, Air Busan saw an increase of over 15%, while Jin Air and T'way Air reported declines after initial gains.

Additionally, the major airlines, Korean Air Lines and Asiana Airlines, experienced minor decreases of 1.3% and 0.8%, respectively.

Analyst Yang Seung-yoon from Eugene Investment Securities commented, "It will take time to assess the cause of the accident, but consumer sentiment will inevitably be hurt, as credibility is important for budget carriers whose seats and services are not much different from each other."
"In terms of overall travel demand, there might be some cancellations in the short term, but it is unlikely to weaken structurally."

Many victims of the plane crash, the deadliest in the nation's history, were reportedly returning from vacation for the holiday season.
Consequently, travel agency stocks also took a hit, with Hanatour Service declining by 7% and Very Good Tour seeing an 11% decrease.