AUSTRALIA | Jetstar Asia is set to close, as the budget trans-Tasman airline focuses on growth in Australia and New Zealand.
The Qantas Group has announced a strategic restructuring which supports its historic fleet renewal program and strengthens its core businesses in Australia and New Zealand. The closure of Jetstar Asia enables the Qantas Group to recycle up to AUD 500 million in capital, supporting its historic fleet renewal program.
Thirteen 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 the airline with no changes to Jetstar Airways and Japan services into Asia. All of Jetstar Airways international services in and out of Australia remain unchanged.
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; the airline 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 AUD 35 million underlying EBIT loss this financial year, prior to the closure decision. It 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 its supplier costs increase by up to 200 per cent, which has materially changed its cost base,” said Hudson.
“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.”
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