Qantas Airways (ASX:QAN) reaffirmed its Project Sunrise target of contributing AU$400 million in earnings before interest and taxes at full fleet scale, with premium seating, a Sydney-and-Perth hub strategy, and fleet optimization serving as key elements of the business case, Jarden said in a note on Thursday.
Qantas and Airbus revealed that the Airbus A350 that will serve as the backbone of Project Sunrise operations, confirming Sydney to London as the launch route set for October 2027, with ticket sales planned to open in February 2027.
Jarden said the Project Sunrise investment case remains broadly unchanged from the airline's 2023 strategy day despite higher fuel costs and strong premium demand, which will remain key investor focus areas ahead of fiscal 2026 results.
The investment firm noted that the airline is targeting about a 20% yield premium on Project Sunrise flights versus its current long-haul network, driven mainly by a higher share of premium seats, with the remainder coming from higher fares.
The firm emphasized that the airline's Sydney-and-Perth hub strategy could consolidate demand to support ultra-long-haul load factors, while potential New Zealand market share gains could add feeder traffic without materially cannibalizing existing routes.
Jarden added that fleet strategy remains a key investor focus, with fiscal 2026 results expected to provide more detail on A380 retirements and how the airline will optimize its A330, A350 and Boeing 787 fleets to support returns while maintaining network coverage.
Jarden reaffirmed its buy rating on Qantas Airways and its AU$11.25 price target.
Qantas Airways' shares were up nearly 1% in recent Friday trade.