Qantas Airways' (ASX:QAN) revised fuel expense and earnings guidance are in line with expectations, Jefferies said in a note on Tuesday, adding that the airline appears insulated from any material impact from the war in West Asia.

The company increased its second-half fuel outlook to a range of AU$3.1 billion to AU$3.3 billion from AU$2.5 billion previously, broadly aligning with Jefferies' estimate of AU$3.19 billion. Domestic revenue per available seat kilometer (RASK) is projected to grow by 5% in the period, up from prior guidance of around 3%.

The investment firm noted that while current demand levels are expected to hold, any future weakness would likely be offset by lower capacity.

Jefferies said it expects the company to cancel its AU$150 million interim share buyback and another buyback expected at its fiscal year 2026 result to retain cash to strengthen its balance sheet.

The brokerage will review its fuel forecasts in a few weeks once May refinery margin data becomes available, it added.

Jefferies maintained a buy rating on Qantas with a price target of AU$12.80.