Project Sunrise on Track as Qantas Faces Higher Fuel Costs and Pilot Negotiations
Project Sunrise is progressing towards its 2027 launch, with the first Airbus A350-
1000ULR completing its maiden test flight from Toulouse to Melbourne.
The first aircraft is scheduled for delivery to Qantas in April 2027, with the inaugural
non-stop Sydney–London service expected to commence in October 2027. Non-stop
Sydney–New York flights are planned by the end of 2027.
Qantas is estimated to have secured each aircraft for approximately $330 million and
expects Project Sunrise to double the profits of its international business once all 12
A350-1000ULRs are in service, generating around $400 million in annual earnings.
Fares are expected to command a 15–20% premium, reflecting a reduction of three
to four hours in travel time.
Qantas has been recognised as the world’s most punctual major airline, with just
over 87% of its 22,617 flights arriving on time. This marks a significant turnaround
after its post-COVID operational challenges, when it ranked 106th globally for on-
time performance in 2023.
Jetstar pilots have approved a new four-year Enterprise Bargaining Agreement
(EBA), ending a lengthy negotiation that included Fair Work Commission conciliation
and the threat of industrial action. The agreement provides annual pay increases of
3% over four years, improved rostering, expanded part-time work opportunities,
higher overnight allowances, and stronger career and employment protections.
Negotiations continue over a new EBA for Qantas long haul pilots after they rejected
a proposed 25% pay rise over four years, despite offers of improved rostering and
scheduling, enhanced career progression, and additional payments for online
training. The proposal was rejected by 66% of eligible pilots, with an exceptionally
high voter turnout of 95%, reflecting widespread concern that the offer did not
adequately address years of wage restraint and concessions made during the
COVID-19 period.
Qantas has extended schedule changes across its international and domestic
networks through September 2026, citing ongoing Middle East tensions, higher fuel
costs, and strong demand for European travel. Capacity has been shifted from some
US and domestic routes to Europe, including extending Perth–Rome services to the
end of October and restoring three weekly Sydney–Singapore–Paris return flights.
The airline will also continue operating with around 5% less domestic capacity
through September to improve reliability and better manage aircraft availability.
For the second half of FY2026, Qantas has increased its projected fuel bill from
around $2.5 billion to between $3.1 billion and $3.3 billion, reflecting higher jet fuel
prices driven by the ongoing conflict in the Middle East.
Source: Jetstar pilots vote to approve a new 4 year pay deal by Robyn Ironside The
Australian June 17th
Flying Kangaroo on top of the world in punctuality ratings by Robyn Ironside
The Australian July 10th
Touch down: Qantas’ $330m Project Sunrise plane gets lift off date by Robyn Ironside The Australian July 15th .
Image Source: Qantas