Jetstar Asia to Cease Operations in July
Qantas Group has confirmed the closure of Jetstar Asia, its Singapore-based low-cost airline. Operations will cease on 31 July 2025. The decision follows rising supplier costs, intense regional competition, and a strategic shift to strengthen core markets. Jetstar Asia is forecast to post a $35 million EBIT loss this year. The carrier’s closure affects only its intra-Asia routes, with no impact on Jetstar Airways or Jetstar Japan.
Figure 1: Qantas Group confirms the closure of Jetstar Asia
Focus Returns to Australia and New Zealand
Qantas will redeploy 13 Airbus A320 aircraft to core markets in Australia and New Zealand. This move will unlock $500 million in fleet capital to support renewal efforts and create over 100 local jobs. The redeployment will also help replace leased aircraft in Jetstar Airways’ domestic operations. Some planes will assist Qantas’ regional network, especially in servicing Western Australia’s resource sector.
Jetstar Asia’s Rising Costs Prompt Action
Qantas cited high airport fees and supplier costs rising by up to 200 per cent as key reasons for the closure. “Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years,” said Qantas CEO Vanessa Hudson. “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.”
Figure 2: Qantas Chief Executive Officer, Vanessa Hudson
Customer and Employee Support Announced
Jetstar Asia will operate a reduced flight schedule over the next seven weeks. Qantas will provide full refunds and rebooking support for affected customers. All Jetstar Asia employees will receive redundancy benefits and career support services. Qantas will explore redeployment opportunities within the Group and with regional airline partners. Hudson added, “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.”
Singapore Remains a Key Qantas Hub
The closure will not affect Qantas’ existing network into Asia. Jetstar Airways will maintain flights to popular destinations including Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea. Singapore remains Qantas Group’s third largest international hub. Qantas connects through nearly 20 codeshare and interline partners across Asia via Singapore.
Fleet Strategy Aligned with Long-Term Goals
Qantas continues its ambitious fleet renewal program with nearly 200 aircraft on order. Jetstar Asia’s aircraft will support this transition and improve financial performance. “We’re making disciplined decisions which recycle capital across our business and prioritise it to stronger performing segments,” said Hudson. Qantas expects the first Airbus A321XLR delivery this month and its first Project Sunrise A350-1000ULR in 2026.
Figure 3: Qantas expects the first Airbus A321XLR delivery this month
Financial Impact of Closure
Qantas estimates the closure will incur a one-off cost of $175 million. Around one-third of the impact will appear in FY25 and the remainder in FY26. This includes redundancy costs, foreign currency losses, and asset write-downs. The cash outlay, forecast at $160 million, will largely occur in FY26. Working capital from Jetstar Airways’ expanded operations will help offset this.
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Jetstar Asia’s Final Performance Figures
Jetstar Asia is expected to post a $25 million EBIT loss in the second half of FY25. Cyclone Alfred in March disrupted Qantas’ domestic network and will reduce earnings by $30 million. Group international capacity will rise by 9 per cent this half, 3 per cent below prior guidance due to industrial action affecting Qantas’ Finnair wet lease. Qantas continues to see strong demand across both domestic and international markets.
Qantas Group Restructure Strengthens Core
Qantas views the restructure as a step to bolster its presence in Australia and New Zealand. Hudson said, “We are currently undertaking the most ambitious fleet renewal program in our history, with almost 200 firm aircraft orders and hundreds of millions of dollars being invested into our existing fleet.” Qantas will continue focusing on fleet upgrades, cost efficiency, and market expansion across its core businesses.
