Qantas a flyer in sea of red

QANTAS looks set to benefit from weakening oil prices, with the national carrier’s share price hitting a four-year high.

Qantas.

WHILE the continual weakening of oil prices has sent investors hurtling for the exits of global bourses, Qantas looks set to benefit significantly, with the national carrier’s share price hitting a four-year high.

Qantas shares ended 4.4 per cent higher at $2.61, against a benchmark index fall of 1.51 per cent. Earlier, Qantas shares hit $2.64, their highest point since December 2010 when the stock touched a peak of $2.72.

Jet fuel, which trades at a premium to the oil price, is more than a third lower that it was a year ago.

Last month, Qantas said it expects to return to an underlying profit in the first half, as it reaps the benefits of its wide-reaching transformation strategy as well as a drop in the Australian dollar and oil prices.

The strength of Qantas shares was in a sharp contrast to the broader local market, which had been a sea of red during the session. Energy stocks weighed most heavily, giving up 5.49 per cent as a sector, while materials were also deep in the red, losing 3.29 per cent.

The losses came after global bourses suffered steep falls after oil prices sank to more than five-year lows.