Qantas Airways (ASX:QAN) will upgrade the cabins of 42 Boeing 737 planes flying domestic and short-haul international routes, the airline said in a statement Thursday.

The overhaul includes new business and economy class seats, larger overhead lockers, as well as new carpets, sidewalls, and mood lighting.

The first refurbished aircraft is expected to start flying from 2027.

The overhaul comes as Qantas replaces its 737 jets with Airbus A321XLRs over the next decade.

The Australian flagship carrier's shares were up over 5% in recent Thursday trade.