By the end of July 2025, the Singapore-based budget airline Jetstar Asia will cease operations, according to its parent company, Qantas Group. The decision arose due to rising costs and fierce competition in the Asian market. More than 500 employees and 16 intra-Asia routes will be affected, and customers with bookings will be fully refunded. The fleet shall be transferred to other Qantas subsidiaries. The Qantas Group CEO, Vanessa Hudson, expressed her gratitude towards the Jetstar Asia team for their significant contribution to the aviation industry in this part of the world over the last 20 years; however, the

Reasons for Closure

Jetstar Asia has closed due to considerable financial challenges. Qantas Group revealed that supplier costs have risen by up to 200% in some situations, significantly limiting the airline’s capacity to remain profitable. High airport fees and increased competition in the Asian aviation sector have exacerbated the difficulties. The airline was projected to post an underlying EBIT loss of AUD 35 million this financial year, underscoring its struggle to deliver returns comparable to Qantas’ core markets in Australia and New Zealand. After a strategic review, Qantas, together with majority shareholder Westbrook Investments, decided to wind down operations, citing the fundamental challenges in sustaining the airline’s viability (Qantas Newsroom). region 

Impact on Employees

The closure would affect around 500 Singapore-based employees, dealing a huge blow to the local workforce. Qantas has pledged to assist these employees by offering redundancy benefits and employment support services. The company is actively attempting to secure job options within the Qantas Group or with other airlines in the region to limit the impact on employee livelihoods. This approach reflects Qantas’s effort to balance business decisions with responsibility towards its workforce.

Impact on Customers

For passengers, the closure means the discontinuation of 16 intra-Asia routes operated by Jetstar Asia. However, Jetstar Airways and Jetstar Japan services into Asia, as well as all Jetstar Airways international services in and out of Australia, will remain unaffected. Customers with bookings on cancelled flights shall have refunds paid in full, and Qantas Group shall try to re-accommodate passengers on alternative flights wherever possible. Jetstar Asia will operate on an increasingly reduced schedule until its final day of service, 31 July 2025, giving travellers some time to rearrange themselves.

Financial Implications

The closure will incur one-off redundancy and restructuring costs estimated at AUD 175 million for Qantas Group. Approximately AUD 58.33 million of this will be recognised in the current financial year (FY25), with the remainder in FY26, taken outside of underlying earnings. Despite these expenditures, the decision is expected to free about AUD 500 million in fleet capital, which will be reinvested in Qantas’ core businesses. The direct pre-tax cash effect is expected to be AUD 160 million, primarily in FY26; however, this will be largely offset by working capital benefits from Jetstar Airways’ expansion and tax adjustments. The following table summarises the financial impact: