Investigators work on the wreckage of a Jeju Air passenger jet that killed 179 in December at Muan International Airport in South Jeolla Province, Jan. 15. Yonhap

Jeju Air and Air Busan are offering significant discounts on plane tickets to stimulate demand, which has recently been declining following their involvement in major aircraft accidents, according to data and industry officials Wednesday.

The corporate image of Jeju Air was severely tarnished in the aftermath of the tragic plane crash in December last year, which claimed 179 lives. This led to an immediate decline in earnings for the low-cost carrier (LCC), as customers canceled tickets amid growing safety concerns.

According to data from the Ministry of Land, Infrastructure and Transport, the number of passengers flying with Jeju Air dropped by 29.3 percent over 26 days following the crash on Dec. 29, compared to the previous month.

Police officials investigate a passenger jet that burned down before its flight last month at Gimhae International Airport in Busan, Feb. 3. Yonhap

Responding to the freeze in demand, Jeju Air adopted an ultracheap sales strategy by drastically cutting ticket prices. The airline is selling tickets between Seoul and Jeju for less than 20,000 won ($13.85), more than twice as cheap compared to its usual pricing.

This is also the case for Air Busan, which is under scrutiny by relevant authorities after one of its passenger jets caught fire before its flight last month.

The fact that both accidents occurred relatively close to each other in time has also had a negative impact on other LCCs amid ongoing passenger safety fears.

According to the land ministry's data, the number of passengers for Jin Air and T'way Air also fell by 10.4 percent and 5.6 percent, respectively, during the same period, as customer's fears of LCCs reached their peak. In contrast, the number of passengers for Korea's two full-service carriers, Korean Air and Asiana Airlines, declined by only around 2 percent each.

"LCCs have no choice (but) to cut the prices for their tickets to minimize shocks and ensure profitability due to their heavy sales reliance on them," an official from the aviation industry said. "But if they continue to be obsessed with such business models, safety concerns will keep resurfacing, as they cannot secure enough budget for investment to guarantee aircraft safety."

The uncertain macroeconomic environment also pressures more LCCs to engage in a price war, as they face rising fuel costs and high won-dollar exchange rates, according to the official.