AirAsia 's share price dropped sharply following the disappearance of its affiliated Indonesia AirAsia's Flight QZ8501. On Tuesday, AirAsia's stock price fell 8.5 percent to 2.69 Ringgit per share, the biggest daily fall since September 2011. The company's share has accumulatively increased over 22 percent so far this year, and reached the highest level for 52 weeks on last Friday.
Analysts said the incident of the disappearing plane may impact AirAsia's near-term passenger growth, and earnings may come under pressure as well, but here is a silverlining, the negative impact is mainly due to this air tragedy, and not because of any changes in the group's fundamentals, which remain intact with long-term potential growth prospects and low-cost competitive advantage.