Fears over rising fuel prices and war in Iraq have dented the second part of an A$800 million ($440 million) share issue from Qantas Airways and could limit its ambitions in New Zealand. After Qantas impressed analysts with a strong A$428 million ($235 million) net profit for its financial year to June, the A$600 million first tranche of its proposed share sale was oversubscribed by institutional investors. It then looked as if Australia's dominant carrier would be flush to order new jets and expand its regional role via a stake in Air New Zealand (ANZ). However, the A$200 million second tranche offered to retail investors has languished after the airline's share price slid below the A$4.20 set price. That slide, analysts say, reflects investor fears about rising oil prices, which Qantas has only half-hedged, and the prospect of war in Iraq.