A welcome tailwind for Qantas

A lower oil price is good news for Qantas' international business and airline passengers, with the benefits of lower fuel costs likely to flow through to the core of its earnings base.

The continuing fall in crude oil prices to their lowest levels since the financial crisis may not be good news for energy producers, but it will provide a powerful tailwind for airlines, adding further momentum to the quite dramatic uptick in Qantas’ fortunes.

Brent crude traded at $US57.93 a barrel overnight, its lowest level since May 2009 and about 45 per cent below its level a year ago. While jet fuel trades at a premium to the oil price, it is now more than a third lower that in was a year ago.

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