Shares of South Korean budget airline Jeju Air (089590.KS) plunged to a record low on Monday following the country’s deadliest air crash, which claimed 179 lives. The stock fell 8.5% by 0312 GMT, after dropping as much as 15.7% earlier to 6,920 won—the lowest since its 2015 listing. The crash erased up to 95.7 billion won ($65.2 million) in market value.
Jeju Air’s parent company, AK Holdings (006840.KS), also saw shares plummet 12%, marking their lowest in 16 years.
The tragic incident occurred Sunday at Muan International Airport and was Jeju Air’s first fatal crash since its founding in 2005. It is the country’s third-largest airline by passenger numbers. Acting President Choi Sang-mok ordered an emergency inspection of South Korea’s airline operations after recovery efforts are completed.
Other budget carriers saw mixed results: Air Busan (298690.KS) rose over 15%, while Jin Air (272450.KS) and T’way Air (091810.KS) initially gained before retreating. Major airlines Korean Air Lines (003490.KS) and Asiana Airlines (020560.KS) fell 1.3% and 0.8%, respectively.
Analyst Yang Seung-yoon noted the crash would damage consumer trust in budget airlines, though overall travel demand may recover over time.
Travel agencies also faced fallout, with Hanatour Service (039130.KS) and Very Good Tour (094850.KQ) dropping 7% and 11%, respectively. Yonhap reported doubled cancellations and halved bookings for one operator as tour companies suspended promotions.
Most victims were returning from holidays ahead of the festive season, officials confirmed.
($1 = 1,467.9500 won)
Also read: Cyberattack Disrupts JAL Flights; Systems Restored
