Asiana Airlines Hits Lower Limit... Airline Stocks Plummet Together

[Asia Economy Reporter Koh Hyung-kwang] As the aviation industry is expected to suffer significant damage due to the aftermath of the novel coronavirus infection (COVID-19), airline stocks such as Korean Air and Asiana Airlines showed a sharp decline simultaneously on the 19th.

According to the Korea Exchange on the day, Korean Air closed at 13,600 KRW on the KOSPI market, down 24.8% from the previous trading day. During the session, it dropped to as low as 12,850 KRW, close to the lower limit price, but narrowed the decline somewhat by the close.

Asiana Airlines ended the day at the lower limit price (-29.9%). The opening price was 3,200 KRW, but the decline widened gradually, and it fell to the lower limit price with 15 minutes remaining before the market closed. In addition, Jeju Air (-27.5%), Jin Air (-29.5%), and Air Busan (-29.9%) also showed sharp declines simultaneously.

The sharp drop in airline stocks is due to concerns that the global spread of COVID-19 will severely worsen the performance of the aviation industry. Ryu Je-hyun, a researcher at Mirae Asset Daewoo, said, "A virus fear has swept over airline stocks," and "The first half of this year will inevitably see a deterioration in performance due to overlapping negative factors."

Kang Sung-jin, a researcher at KB Securities, also stated, "The first shock of COVID-19 will appear as a large net loss for airlines," and "In the first quarter, a massive operating deficit is expected for airlines due to an absolute lack of travel demand."

This content was produced with the assistance of AI translation services.