Shares of Qantas Airways hit an all-time high on Wednesday after Jefferies analysts hiked their price target on Australia’s flag carrier, on the back of low fuel costs and expectations of a dividend payment.

Qantas stock rose as much as 3.6% to a record high of A$7.830 by 0054 GMT.

It was on track for its strongest session since late August and is among the top gainers on the benchmark index, which was up 0.2%.

On Tuesday, Jefferies analysts raised their price target on the airline to A$10.53 from A$7.98, as strong domestic and international demand has raised expectations of a dividend payment along with its first-half earnings in February.

A slowdown in oil prices amid higher US crude inventories has also helped bolster expectations for stronger earnings for the carrier.

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“We expect demand to have remained stable following the release of FY24 results, however the price of fuel has trended lower allowing for more discounting and investment into customer service,” the analysts said.

Lower oil/jet fuel prices are benefiting Qantas both directly to their earnings and indirectly by raising the valuations of the global airline peers, said Owen Birrell, senior equity research analyst at RBC Capital markets.

Qantas’ shares had risen nearly 41% this year, as of last close.