Jetstar Asia, the Singapore-based low-cost carrier and subsidiary of the Qantas Group, will cease operations on July 31, 2025, following a joint decision by the airline and majority shareholder Westbrook Investments. The closure comes after years of mounting operational challenges, including rising supplier costs, high airport fees, and intensifying regional competition, which have undermined the airline’s financial viability.
Despite its reputation for strong customer service and operational reliability, Jetstar Asia is expected to post an underlying EBIT loss of $35 million for the current financial year, with $25 million of that loss occurring in the second half. The airline will wind down services over the next seven weeks with a progressively reduced schedule until its final day of operation.
The decision affects only Jetstar Asiaโs intra-Asia routes from Singapore. Other operations under the Jetstar brandโincluding Jetstar Airways in Australia and New Zealand, and Jetstar Japanโwill not be impacted. Jetstar Airways will continue flights between Australia and popular destinations in Asia, including Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea.
Qantas Group CEO Vanessa Hudson acknowledged the contribution of Jetstar Asia to the region’s aviation sector over the past two decades. โJetstar Asia has been a pioneering force in the Asian aviation market, making air travel accessible to millions,โ Hudson said. โDespite the team’s exceptional performance, weโve seen supplier costs increase by up to 200 per cent, fundamentally altering the airlineโs cost base.โ
Customers with existing bookings on affected flights will be offered full refunds, and efforts will be made to rebook them on alternative carriers. Affected employees will receive redundancy packages and employment transition support. Qantas is also working to place some staff in other roles within the Group and the broader aviation sector.
The closure is part of a broader capital reallocation strategy by the Qantas Group aimed at improving long-term returns and supporting ongoing fleet renewal. The move is expected to unlock up to $500 million in fleet capital. Jetstar Asiaโs 13 A320 aircraft will be redeployed to support operations in Australia and New Zealand, creating over 100 new jobs and reducing the reliance on leased aircraft. Some aircraft will also bolster Qantasโ regional fleet, particularly in Western Australiaโs resource sector.
Qantas is currently executing its largest-ever fleet renewal program, including nearly 200 new aircraft on order. The Group is set to receive its first Airbus A321XLR this month and its first A350-1000ULR under Project Sunrise in 2026.
The financial impact of Jetstar Asiaโs closure includes an estimated $175 million in one-off redundancy, restructuring, and non-cash write-downs, with approximately a third recognized in FY25 and the rest in FY26. The direct pre-tax cash outlay is projected at $160 million, mainly in FY26, though this will be partially offset by efficiencies and tax adjustments across the Group.
Elsewhere, Qantas Group reported that domestic capacity growth in the second half of FY25 was below previous forecasts due to the disruption caused by Cyclone Alfred in March, which is expected to result in a $30 million earnings impact. International capacity is now forecast to grow by 9 percent for the half, slightly below previous guidance due to industrial action affecting a Finnair wet lease.
The Group remains confident in its broader strategy, with ongoing strong demand across both domestic and international markets. Unit revenue and capital expenditure are expected to remain in line with earlier guidance.
