Airline and Airport Innovations for Australian Travellers in FY26

Corporate Traveller Global Managing Director Tom Walley said airlines had made a bold statement about who they were looking to ‘woo’ in this financial year. “The aviation industry is stepping up in ways we haven’t seen in years in response to continual passenger volume growth, both globally¹, and in Australia²,” Walley said.

“We’re seeing all new levels of innovation delivered as investment remains heavily focused on the premium cabin and airport lounges. High-income earners and big travel spenders, alongside corporate travellers, will reap the benefits as airlines race to deliver the ultimate in luxurious, productive travel. “These changes go beyond the oftentimes incremental improvements; they’re redefining how Australians travel and work, setting a new standard for the modern business journey.

“But for those not able to afford the pointy end, there are also upgrades coming to the economy cabin and broader aircraft upgrades that will make the journey more comfortable and better connected to life on the ground. “More comfort and connectivity contribute to a more productive and enjoyable, or relaxing journey – whichever the preference – allowing professionals to arrive at their destination ready to go."

All bets on premium cabin popularity

“Over the last couple of years, we have seen carriers reconfigure aircraft layouts to not only expand the volume of premium economy, business and first class seating, but also innovate the top cabin offering, and set a point of difference as the aviation sector gets increasingly more competitive. There are a few leaders in the field of luxury air travel, and the upgrades we’re expecting just on the horizon point to that. In fact, one carrier could be set to have an ultra-long-haul flight operating without an economy cabin at all,” Walley said.  

The Next Gen Qsuite by Qatar Airways will offer increased shoulder space, larger lie-flat beds, and the ability to connect with two or four suites into pair or quad configurations – perfect for corporate teams or family and couple travellers³. 

“Qatar Airways is taking a step beyond the current focus on Wi-Fi connection and enhancing the in-air connection with those you’re travelling with. Whether you want to have a dining table-style meal with your spouse or family, or you have a presentation deck to finalise with your colleagues ahead of a pitch, this is something I’m really looking forward to seeing introduced, alongside the focus on increasing privacy when it’s preferred,” Walley said.

Singapore Airlines will retire its last 737-800 jets by late October 2025, paving the way for lie-flat beds in every business class seat aboard its fleet⁴, so all medium-to-long-haul travellers benefit from the optimal level of comfort that the carrier is known for.

Aircraft upgrades make leaps in comfort and efficiency

“There’s been plenty of attention on delayed new aircraft deliveries, but those days will soon be behind us, with the likes of Qantas starting to take ownership of new aircraft as it makes a transition from Boeing to Airbus,” Walley said. “While it can often just be a subtle change that the less travelled of us would notice, there are some improvements that will be a joy to welcome for the rest of the more seasoned travellers among us.”

Qantas is transitioning its fleet from Boeing 737s to Airbus A321XLRs, significantly quieter in design, smoother in flight, and offering increased perceived space due to intelligent layout⁵. The first aircraft arrived in Sydney this month (July 2025), with three more to follow in December, and 24 others to steadily follow in the years ahead, according to Qantas.

Jetstar will follow suit by modernising its Boeing 787 fleet starting in late 2025, with enhanced business class seating increasing from 21 to 44 seats, and in-flight connectivity (which will come at a cost to passengers)⁶. With the increase in business class, Jetstar’s economy passengers will soon be able to upgrade on international flights using Qantas Points⁷.

Philippine Airlines will introduce its new Airbus A350-1000 fleet as it begins to take delivery of the aircraft from late 2025. The fleet game-changer will boost passenger capacity, ultra-long-range connectivity with improved fuel efficiency, reduced carbon emissions, and offer flagship business class designs primed for routes to the U.S. and Canada⁸. 

Middle Eastern carriers ramp up Australian services with a focus on corporates and comfort

“The Middle East has long been a favourite stopover hub for Australians, and it’s only growing with Middle Eastern carriers putting a firm focus on the Australian market, which means we benefit from the most expansive offering seen to date, and operators fight for the Australian travellers’ ticket purchase and loyalty,” Walley said.

The strategic alliance between Virgin Australia and Qatar Airways is already enhancing global connectivity since it began last month (June 2025), and will continue into late 2025 as Melbourne benefits from the deal in December⁹. It is already connecting Australian passengers to Doha, from where it provides access to more than 100 global destinations across Europe, Africa and the Middle East. “This partnership is one of the biggest, most positive moves we’ve seen in travel from Australia this decade. This partnership isn’t just about adding destinations; Australian travellers can expect more choice, competitive pricing, and streamlined loyalty benefits – elements that promise to reshape the competitive landscape in business travel,” he said.

Emirates will receive its first long-range A350 later this year, which is set to make its debut in Australia, with the introduction of flights to Adelaide from December 2025¹⁰.

Etihad is also expanding its capacity to Australia, with the introduction of the A350-1000 between Sydney and Abu Dhabi, bringing with it more premium seating, and joining the existing Boeing 787-9 Dreamliner currently on the route. Beginning in October 2025 and expanding in early 2026, by the time the schedule is fully deployed, it will grow overall seat capacity by 10 per cent, and premium seat capacity by more than 20 per cent. The aircraft’s new luxurious business class suites will be equipped with privacy doors, perfectly suited to travellers looking to fly in total privacy¹¹.

The next generation of the economy cabin

While a launch date is yet to be formally revealed (but anticipated within the next 12 months), Air New Zealand's Sky Nest is poised to redefine economy travel by offering bunk-style sleeping options on long-haul flights. This innovation will come with the refit of its 787s and will cost between $400-$600 for four hours of blissful in-air sleep¹².

“This is a significant departure from traditional economy seating, allowing passengers who may not have the budget of a business or first class seat to still lie flat and fully rest on journeys across the globe. We’re interested to see how this addition would impact the premium economy offering, which has been growing in popularity in recent years,” Walley said.

Emirates also claims to be in the process of developing next-generation economy seating, although details remain under wraps. The airline has hinted at a prototype that promises to enhance passenger comfort, making this an area to watch keenly for prospective upgrades in FY26¹³.

Connectivity is King

“The access to free and fast Wi-Fi is a no-brainer. Travellers want to remain connected or at least have the choice to be able to connect, in a way that easily facilitates uninterrupted work and communication mid-air around the globe. It continues to be one of the key reasons travellers will remain loyal, or not, to certain carriers,” Walley said.  When Singapore Airlines bids farewell to its 737-800s in October 2025, it will mean free Wi-Fi access for KrisFlyer members across its entire fleet¹⁴.

Jetstar's Boeing 787 upgrades promise ergonomic seating with USB power outlets and device holders, as well as in-flight internet access, accommodating the tech-forward needs of today’s traveller¹⁵. 

Starlink, which provides internet connectivity through a constellation of low-Earth orbit satellites, is making waves in airline connectivity. Qatar introduced Starlink to all passengers, available from gate to gate, as of February 2025. It was the first global airline to operate a Boeing 777 Starlink-equipped flight, setting new industry standards for in-flight connectivity. United Airlines has followed suit, recently commencing the installation of Starlink earlier in 2025, marking the beginning of a fleet-wide deployment program across more than 40 regional aircraft monthly through to the end of 2025¹⁷.

New and improved business lounges elevate the pre-flight experience

Qantas has announced a raft of lounge upgrades, including a new and larger Auckland lounge that will open in 2026, showcasing the best of New Zealand’s food and wine scene. It also recently opened two new lounges, now available to its premium customers, including a $100m lounge upgrade in Adelaide, inspired by Kangaroo Island, and a Broome Regional Lounge upgrade, which now boasts doubled capacity¹⁸. Air New Zealand is understood to be following suit, with the opening of its Elite Flagship Lounge in Auckland in 2026¹⁹.

Loyalty program holder wins

Velocity is set to launch a new Platinum Plus tier from October, designed to reward loyal flyers with four complimentary business class upgrades, ensuring frequent travellers receive benefits commensurate with their service usage²⁰. Qantas is also partnering with David Jones to offer Frequent Flyers Qantas Points when shopping, integrating travel rewards with shopping loyalty²¹. 

Lastly, the Oneworld union strengthens with Hawaiian Airlines joining the alliance in 2026, bringing with it anticipated loyalty program enhancements for Australian travellers, granting expanded global access and benefits²².