Qantas Shares Are Going Berserk, Breaking Through The $2 Mark

Scott Barbour/Getty Images

Qantas shares took off again this morning, jumping 10% on opening an d breaking through the $2 mark for the first time in three years.

Last week the airline’s stock added 10% in value following a sharp drop in oil prices.

The airline is a big beneficiary of lower oil prices.

Some estimates give Qantas an extra $36 million before tax profit for every $1 a barrel fall in the price of oil.

Qantas still isn’t paying dividends and is in the middle of a $2 billion cost saving program which will see 5,000 jobs go.

However, the airline says it expects to return to profitability this quarter.

Qantas shares have gained almost 60% since mid October.

In late trade the shares were $2.03, up 5.73%.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at