Along with Asiana's Boeing 777 crash in San Francisco, the Korean budget carrier's shares plummeted by 6.2%, their worst fall since December 2011.
During the trading session last Monday, Asiana's shares nosedived to 4,825.00, equivalent to a 295 point drop. Asiana is the second largest airline carrier in Korea. Rival Koran Air's shares increased by 0.7% that same day.
Analysts explained the airline company's crash and burn, commenting that the death of two Chinese passengers and the injuries of over 180 others delivered a killing blow to the company's reputation. Investigations on the cause of the accident are being conducted, but if Asiana's crew will be found guilty, analysts predict that this will spell a financial disaster.
Flight bookings will be cancelled by travelers due to lack of confidence in the airline, said Chris De Lavigne, Frost & Sullivan's aerospace analyst. He said that until there is adequate reassurance from Asiana that they are not the cause of the fatal accident, the company's shares will continue to crash and burn.
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