Qantas CEO Hudson reveals Boeing 737 upgrade details, arrival of new aircraft and Project Sunrise updates

A major Boeing 737 cabin upgrade, 11 new aircraft delivered in the half of 2025, with the first Qantas A321XLR scheduled to arrive in June are all part of the investment to improve the flying experience for customers, CEO Vanessa Hudson revealed today.

New, larger overhead lockers with up to 50 per cent more space, making it easier for every customer to store their carry on bags. Full cabin refresh including new carpets, sidewalls and mood lighting.

The aircraft will continue to be enabled with fast and free Wi-Fi. The upgrade program will deliver a modern ‘as-new’ cabin and align the customer experience with the airline’s new domestic fleet.

Those upgrades and new aircraft, plus a Project Sunrise update and a $1.39 billion underlying profit were all on the agenda at Qantas Group’s half year financial results presented by Hudson and chief financial officer Rob Marcolina, at Qantas and Jetstar’s maintenance hangar in Tullamarine, in Melbourne, this morning.

The first of the refurbished Boeing 737 aircraft is expected to start flying from 2027. They operate across the airline’s domestic network, trans-Tasman routes as well as to short-haul international destinations like Bali, Fiji and Vanuatu.

“We are so excited about the investment in the 737 fleet, Hudson said. “So we have 75 as I said, we’re doing a major overhaul for 42 and they are the younger aircraft.

“It’ll be like new,” she said of the refurb. “It’ll fly alongside the XLR, with very the same seats, the same interiors, bigger bins, and we want our customers to feel when they step on an XLR, or they step on the 737 it feels the same.”

The 737 aircraft being upgraded are scheduled to leave the Qantas fleet towards the end of the renewal program. Some of the remaining aircraft due to retire earlier will also undergo cabin improvements.

Jetstar upgrades

Jetstar’s multimillion-dollar 787 upgrade program, meanwhile, includes overhauling the economy and business class cabins with brand new seats and Wi-Fi connectivity from 2026. The business class offering will also more than double in response to growing premium demand, increasing from 21 seats to 44.

The cabin upgrades are a critical part of the airline’s overall domestic fleet investment that will see the new Airbus A321XLR progressively replace the 737s over the next decade and more of the smaller A220s to join the fleet (with five new A220s currently in operation).

WATCH: Qantas A321XLR in the Paint Shop.

Qantas will be one of the first airlines in the world to operate the A321XLR. Its first aircraft entered the final assembly in November, and has just been painted in the Qantas livery.

The aircraft is scheduled to arrive in June, with a total of four of the next generation aircraft expected by the end of the calendar year.

The A321XLR offers more comfortable Economy seats, a 66 per cent increase in Business seats, a quieter flight, long and wide spacious cabin, extra-large overhead lockers and fast free Wi-Fi.

Jetstar success prompts Sunrise push 

Qantas and Jetstar have more than 100 new aircraft on firm order (with many more purchase right options) and now, more than 80 aircraft that are set to undergo cabin upgrades.

Ten Airbus A330-200s will have significant cabin uplifts, with work starting this year, including installation of the new “Project Sunrise” Economy seats, with 20 per cent larger entertainment screens and USB-C fast charging and Bluetooth audio connectivity. All curtains and carpets will also be replaced with new mood lighting.

The success of longer-range Jetstar aircraft, which contributed to Jetstar Group earnings growing by 35 per cent, enabled by new fleet reaching scale, is also encouraging news for ‘Project Sunrise’ and its A350-1000ULR which will enter the final assembly stage in September 2025.

“The aircraft has entered its production cycle, so we can say very much that we will be seeing that aircraft roll off the line at the end of next year,” Hudson said.

“The demand that we are seeing for premium travel, and also the demand for more point to point travel, is continuing, and we’re seeing that in the success of our Perth-London flight, Perth-Rome, Perth-Paris. And so we are still very committed to seeing that aircraft arrive.”

The first Project Sunrise aircraft will be in the air in 2027.

A380s on their way back

The remaining two of Qantas’ A380s are also now predicted to return to the skies this calendar year.

“We’re excited to get the next two back, so one will be mid year, and one will be towards the end of the year,” CFO Marcolina said.

“In terms of the deployment, we’ll be looking for opportunities to best deploy those aircraft. But our customers love those aircraft, and we always get great feedback, and so we’re looking forward to getting those back as quickly as possible. They are still continuing to go through heavy maintenance and reconfiguration.”

As for the conclusion of the wet lease with fellow oneworld carrier Finnair’s two Airbus A330 aircraft, that will now become a two-and-a-half year dry lease and will feature Qantas livery and crew.