Buying Qantas shares? Meet your new 'final frontier' aircraft

Qantas shares are catching plenty of investor interest on Friday. Here's why.

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Key points

  • Qantas announced the progress of its A350-1000ULR aircraft in its 'Project Sunrise' program, aiming to revolutionise long-haul travel with non-stop flights between Australia, London.
  • The airline's trading update projected a modest 3% increase in domestic unit revenue for H1 FY 2026 and stable international demand, with Qantas Loyalty forecasted to grow EBIT by 10% to 12%.
  • At today's AGM CEO Vanessa Hudson highlighted ongoing robust performance in all segments, with leisure travel and business sectors driving demand, as Qantas adjusts domestic capacity to align with current market trend.

There's a lot happening with Qantas Airways Ltd (ASX: QAN) shares today.

The S&P/ASX 200 Index (ASX: XJO) airline stock released a trading update; its holdings its annual general meeting (AGM); and Qantas unveiled new details of it 'final frontier' aircraft.

On the share price front, Qantas shares are down 3.4% today, trading for $9.84 apiece.

Kicking off with the new aircraft…

Qantas shares eyeing long-haul dominance

This morning Qantas announced key progress with its A350-1000ULR (Ultra Long Range) aircraft.

The company reported that the aircraft, which it said is "set to conquer the final frontier of long-haul travel", is now on the Airbus assembly line in Toulouse, France.

Qantas noted that this marks a significant step towards its historic non-stop flights between Australia and London and New York in its 'Project Sunrise' program.

With the key airframe components now in place, this week will see the aircraft have its engines and flight test instruments installed, in preparation for an extensive test flight program scheduled to kick off in 2026.

Commenting on the new planes intended to support Qantas shares over the long-term, CEO Vanessa Hudson said:

Given Australia's position in the world, Qantas has a long history of breaking aviation barriers. Project Sunrise will not only overcome the tyranny of distance, it will fundamentally change the way our customers travel the world.

Hudson added, "These flights will cut up to four hours off the journey and transform how people experience ultra long-haul travel, through science backed design to minimise jetlag and maximise wellbeing."

Qantas said the first of 12 new aircraft is scheduled for delivery in late 2026, with the first commercial Project Sunrise services commencing in H1 2027.

What sales update did the ASX 200 airline provide?

The sales update released today is likely pressuring Qantas shares.

The airline said its group domestic unit revenue is now expected to increase by approximately 3% in H1 FY 2026, which is at the lower end of the guidance range management provided at its FY 2025 results.

Group international unit revenue guidance for the half year remains unchanged at 2% to 3% growth with demand reported to be stable across Qantas' key markets.

And Qantas Loyalty was said to be trading strongly and on track to achieve 10% to 12% underlying earnings before interest and tax (EBIT) growth in H1 2026, in line with guidance.

Commenting on the trade update at today's AGM, Hudson said:

All segments are continuing to perform well, and mostly in line with previous guidance. Australians' love of travel continued to drive strong leisure demand, with the resources sector and small and medium business travel also growing.

Corporate travel continued to grow, although less than previously forecast. We are adjusting domestic capacity in the second half to match the demand profile we are seeing.

With today's intraday slide factored in, Qantas shares remain up 17.5% since this time last year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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