By Jihoon Lee and Youn Ah Moon
SEOUL (Reuters) – Shares of South Korean airline Jeju Air hit their lowest stage on report on Monday, after the nation’s deadliest air crash killed 179 folks.
Shares of Jeju Air fell 8.4 p.c at 0058 GMT, after falling 15.7 p.c earlier within the session to six,920 received, the bottom since their itemizing in 2015.
Shares of AK Holdings, the holding firm of Jeju Air, fell 12% to a 16-year low.
Sunday’s accident at Muan Worldwide Airport was the primary deadly flight for Jeju Air, a low-cost airline based in 2005 and the nation’s third-largest provider by passenger numbers.
South Korea’s appearing president Choi Sang-mok on Monday ordered an emergency security inspection of the nation’s complete airline working system after restoration work after the crash. of Jeju Air accomplished.
Amongst different low-cost carriers, Air Busan grew greater than 15%. Jin Air (KS:) and T’approach Air fell after rising 5.4% and seven.3%, respectively.
South Korea’s two largest airways, Korean Air Strains, fell 1.3% and Asiana Airways fell 0.8%.
“It is going to take time to evaluate the reason for the accident, however shopper confidence will inevitably be affected, as credibility is vital for low-cost airways whose seats and companies should not very completely different from one another” , stated Yang Seung-yoon, analyst at Eugène Funding Securities.
“By way of general journey demand, there could possibly be some cancellations within the quick time period, however it’s unlikely to weaken structurally.”
Many victims of the aircraft crash, the worst within the nation’s historical past, gave the impression to be coming back from vacation holidays, officers stated.
Journey company shares additionally weakened, with Hanatour Service down 7% and Very Good Tour down 11%.
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