Malaysia Airlines shares closed down 11% in Malaysia following the crash of flight MH17 in Ukraine on route from Amsterdam to Kuala Lumpur.
Some Asian stock markets also ended the day lower on fears the crash may intensify political tensions between the West, Ukraine and Russia.
This is the second catastrophe to hit the Malaysian airline this year after flight MH370 disappeared in March.
Questions are being asked about whether the carrier can now survive.
“Even if this is pure coincidence, it’s never happened in history that a flag carrier has seen two wide-body aircraft disappearing in a few months,” said Bertrand Grabowski, head of aviation at DVB Bank, which acts as a banker to Malaysia Airlines.
“The support from the government needs to be more explicit and perhaps more massive.”
Malaysia Airlines has been losing money for many years and its market value has fallen by more than 40% in the past nine months.
Reports suggest that state investment company Khazanah Nasional, the major shareholder in Malaysia Airlines, is looking to take the carrier private.
Khazanah Nasional has invested more than $1 billion into the airline in recent years and had previously indicated that a major restructuring was on the cards.
Analysts said further investment was needed if Malaysia Airlines was to survive in the short term.