Jeju Air shares slump to record low after deadly plane crash (updated)

JejuAir Co

30/12/2024 01:29

(Adds shares of other airlines, analyst comments throughout)
    By Jihoon Lee and Youn Ah Moon
       SEOUL, Dec 30 (Reuters) - Shares of South Korean budget
carrier Jeju Air  089590.KS  hit their lowest on record on
Monday, after the country's deadliest air crash killed 179
people.
    Jeju Air shares traded down 8.4% as of 0058 GMT, after
falling as much as 15.7% earlier in the session to 6,920 won,
the lowest since they were listed in 2015.
    Shares of AK Holdings  006840.KS , the holding company of
Jeju Air, fell as much as 12% and hit their lowest in 16 years. 
    The crash on Sunday at Muan International Airport was the
first fatal flight for Jeju Air, a low-cost airline founded in
2005 and the country's third-largest carrier by passenger
numbers.
    South Korea's acting President Choi Sang-mok on Monday
ordered an emergency safety inspection of the country's entire
airline operation system once the recovery work on the Jeju Air
crash is finished.
    Among other budget carriers, Air Busan  298690.KS  rose more
than 15%. Jin Air  272450.KS  and T'way Air  091810.KS  fell
after rising as much as 5.4% and 7.3%, respectively. 
    South Korea's two major airlines, Korean Air Lines
 003490.KS  dropped 1.3% and Asiana Airlines  020560.KS  fell
0.8%. 
    "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," said Yang Seung-yoon, an
analyst at Eugene Investment Securities. 
    "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 worst in the country's
history, appeared to be returning from vacation for the holiday
season, officials said.
    Travel agency stocks also weakened, with Hanatour Service
 039130.KS  down as much as 7% and Very Good Tour  094850.KQ 
down as much as 11%. 
    

 (Reporting by Jihoon Lee and Youn Ah Moon; Editing by Kim
Coghill and Jacqueline Wong)
 ((jihoon.lee@thomsonreuters.com;))