SEUL: Following the country’s deadliest air crash, which claimed 179 lives, on Monday ( Dec 30 ), Jeju Air’s shares hit their lowest level on record.
Jeju Air shares traded down 8.5 per cent as of 12.12pm local time, after falling as much as 15.7 per cent earlier in the session to ₩6, 920 ( US$ 4.70 ), the lowest since they were listed in 2015. The share roll on Monday wiped out as much as ₩95.7 billion in market capitalisation.
Stocks of AK Holdings, the holding company of Jeju Air, fell as much as 12 per cent and hit their lowest in 16 times.
The second fatal journey for Jeju Air, a low-cost flight founded in 2005 and the third-largest by customer figures, was the fall on Sunday at Muan International Airport.
After the restoration job on the Jeju Air fall is complete, South Korea’s acting leader Choi Sang-mok on Monday ordered an emergency health inspection of the entire airline operation system.
Among other resources companies, Air Busan rose more than 15 per cent. Jin Air andT’way Air fell after rising as much as 5.4 per share and 7.3 per share, between.
South Korea’s two big carriers, Korean Air Lines dropped 1.3 per share and Asiana Airlines fell 0.8 per cent.
” Consumer attitude will inevitably suffer as a result of the accident, but it will take time to fully understand the cause of the accident,” according to Yang Seung-yoon, an analyst at Eugene Investment Securities.” Cliability is essential for budget ships whose votes and companies are not significantly different from one another.
” In terms of general travel demand, there might be some delays in the short term, but it is improbable to undermine structurally”.
Travel companies shut down their promotional and advertising campaigns, with one operator’s tickets and delays for tour packages only half way up, according to the Yonhap news agency.
Some patients of the plane fall, the worst in the country’s past, appeared to be returning from getaway for the holiday season, authorities said.
Additionally, Hanatour Service and Really Great Tour both experienced declines, dropping as much as 7 %, respectively.