By Jihoon Lee and Youn Ah Moon
SEOUL (Reuters) – Shares in South Korea’s low-cost carrier Jeju Air fell to an all-time low on Monday, after 179 people died in the country’s deadliest plane crash.
Jeju Air shares were 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 it went public in 2015.
Shares of AK Holdings, the holding company of Jeju Air, fell as much as 12% to a 16-year low.
Sunday’s crash 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 airline by passenger numbers.
Acting South Korean President Choi Sang-mok on Monday ordered an emergency safety inspection of the country’s entire air transport operating system after the completion of recovery work following the Jeju Air crash.
Among other low-cost carriers, Air Busan grew by more than 15%. Jin Air (KS:) and T’way Air fell after growing as much as 5.4% and 7.3%, respectively.
The two main South Korean airlines, Korean Air Lines fell 1.3% and Asiana Airlines 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 low-cost carriers whose seats and services are not very different from each other,” said Yang Seung-yoon, an analyst at Eugene Investment Securities.
“In terms of overall travel demand, there could be some cancellations in the short term, but it is unlikely to weaken structurally.”
Many of the victims of the plane crash, the worst in the country’s history, appeared to be returning from holiday vacations, officials said.
Shares of travel agencies also weakened, with Hanatour Service down as much as 7% and Very Good Tour down as much as 11%.
