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Jeju Air shares drop to tape-record low after fatal aircraft crash

Shares of South Korean budget carrier Jeju Air hit their least expensive on record on Monday, after the country's deadliest air crash eliminated 179 individuals.

Jeju Air shares traded down 8.4% since 0058 GMT, after falling as much as 15.7% earlier in the session to 6,920 won, the most affordable since they were noted in 2015.

Shares of AK Holdings, the holding company of Jeju Air, fell as much as 12% and hit their most affordable 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 traveler numbers.

South Korea's acting President Choi Sang-mok on Monday ordered an emergency situation security inspection of the nation's entire airline company operation system once the recovery work on the Jeju Air crash is finished.

Among other budget providers, Air Busan increased more than 15%. Jin Air and T'way Air fell after increasing as much as 5.4% and 7.3%, respectively.

South Korea's two major airline companies, Korean Air Lines dropped 1.3% and Asiana Airlines fell 0.8%.

It will take time to examine the reason for the accident, but customer sentiment will undoubtedly be harmed, as credibility is essential for spending plan providers whose seats and services are not much different from each other, said Yang Seung-yoon, an expert at Eugene Financial investment Securities.

In terms of overall travel demand, there might be some cancellations in the short-term, however it is not likely to deteriorate structurally.

Numerous victims of the plane crash, the worst in the nation's. history, appeared to be returning from vacation for the vacation. season, officials said.

Travel bureau stocks also deteriorated, with Hanatour Service. down as much as 7% and Excellent Tour. down as much as 11%.

(source: Reuters)