By Jihoon Lee and Youn Ah Moon
SEOUL (Reuters) – Shares of South Korean budget carrier Jeju Air hit a record low on Monday, following a plane crash that killed 179 people.
Shares of Jeju Air were trading 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 was listed in 2015.
Shares of AK Holdings, the holding company of Jeju Air, fell as much as 12% and hit a 16-year low.
Sunday's crash at Muan Airport was the first fatal flight for Jeju Air, a low-cost airline founded in 2005 and the country's third largest by passenger numbers.
South Korea's acting president Choi Sang-mok on Monday ordered an emergency safety inspection of the country's entire aviation system after recovery work from the Jeju Air crash was completed.
Among other budget carriers, Air Busan rose more than 15%. Jin Air (KS:) and T'way Air fell after rising as much as 5.4% and 7.3%, respectively.
South Korea's two main airlines, Korea Air Lines fell by 1.3% and Asiana Airlines fell by 0.8%.
“It will take time to assess the cause of the accident, but consumer sentiment will definitely be hurt, as reliability is important for budget carriers whose seats and services are not very different from each other,” said Yang Seung-yoon, an analyst. Eugene Investment Securities.
“In terms of overall travel demand, there may be a short-term withdrawal, but it is unlikely to be structurally weak.”
Many of the victims of the plane crash, the worst in the country's history, appeared to be returning from vacation this holiday season, officials said.
Travel agency stocks also weakened, with Hanatour Service down as much as 7% and Best Touring down as much as 11%.