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12-06-2025
MASCOT, AUSTRALIA: The Qantas Group has today announced a strategic restructure which supports its historic fleet renewal program and strengthens its core businesses in Australia and New Zealand.
The closure of intra-Asia airline, Jetstar Asia, enables the Qantas Group to recycle up to $500 million in capital, supporting its historic fleet renewal program
13 Jetstar Asia Airbus A320 aircraft to be progressively redeployed to Australia and New Zealand bringing more low fares and more local jobs
Only 16 intra-Asia routes will be impacted by the closure of Jetstar Asia with no changes to Jetstar Airways and Jetstar Japan services into Asia. All of Jetstar Airways international services in and out of Australia remain unchanged.
Closure of Jetstar Asia
Jetstar Asia, the Group’s Singapore-based low-cost subsidiary, has faced growing challenges in recent years and the decision has been made, together with majority shareholder Westbrook Investments, to close the airline.
Despite delivering exceptional customer service and operational reliability; Jetstar Asia has been impacted by rising supplier costs, high airport fees, and intensified competition in the region. This has fundamentally challenged the low-cost airline’s ability to deliver returns comparable to the stronger performing core markets in the Group.
The airline is expected to post a $35 million underlying EBIT loss this financial year, prior to the closure decision.
Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operation on 31 July 2025.
The closure of Jetstar Asia only impacts the intra-Asia routes operated by the airline from its base in Singapore. It does not impact Jetstar Airways’ domestic and international operations in Australia and New Zealand or Jetstar Japan. Jetstar Airways will continue to fly from Australia into Asia including to all its popular destinations across Singapore, Thailand, Indonesia, Vietnam, Japan and South Korea.
Qantas Group CEO Vanessa Hudson said; “Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.”
“We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance and exceptional customer service. This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base.”
“I want to sincerely thank and acknowledge our incredible Jetstar Asia team who should be very proud of the impact they have had on aviation in the region over the past two decades.”
Jetstar Asia customers with existing bookings on cancelled flights will be offered full refunds and the Group will look to re-accommodate customers onto other airlines where possible.
All affected Jetstar Asia employees will be provided redundancy benefits as well as employment support services. Qantas is also actively working to find job opportunities across the Group and with other airlines in the region.
Singapore remains a critical hub for the Qantas Group as its third largest international airport. Qantas also offers connections from Singapore through nearly 20 codeshare and interline partners to a variety of destinations across Asia. (Int’l Monitoring Desk)
