Australia's Qantas Airways on Tuesday posted a record first-half profit as the lower oil price shrank its biggest single overhead, and wooed investors with a second straight A$500 million ($361 million) share buy-back.
The profit builds on a turnaround under Chief Executive Officer Alan Joyce, who only last year returned the so-called Flying Kangaroo to profitability as he cut costs including 4,500 jobs, limited discounts and overhauled the frequent flyer program.
Investors however fretted that it appeared to rely too heavily on a one-fifth decline in fuel costs. A spike in the oil price overnight sent the airline's shares down 5 percent in a flat market.
"There's nothing in the result that worries too much, but there's a bit of risk on the oil price going up. People are taking a bit of risk off the table," said Rohan Walsh, investment manager at Karara Capital.