Jetstar Asia will officially end its operations on July 31, 2025, after more than 20 years of serving the Southeast Asian market. The airline, based in Singapore and majority-owned by Westbrook Investments, made the decision together with the Qantas Group. Although it had built a strong reputation for customer service and operational performance, rising supplier expenses, higher airport charges, and growing competition have put pressure on its ability to generate results that match the Group’s stronger core markets.
The decision follows mounting financial challenges. Jetstar Asia expects to post a $35 million underlying EBIT loss for this financial year before the closure takes effect. Its operations will continue for seven more weeks, with a gradually reduced flight schedule until the last day of service.
Jetstar Asia’s shutdown will affect only its intra-Asia routes from Singapore. Jetstar Airways’ domestic and international flights in Australia and New Zealand, as well as Jetstar Japan, remain unaffected. Jetstar Airways will also continue flying from Australia into key Asian destinations including 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.” She added, “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.”
Hudson also shared her appreciation for the staff, saying, “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.”
Customers holding bookings on canceled flights will receive full refunds. The Group will also help transfer affected passengers to other airlines when available. For employees impacted by the closure, Jetstar Asia will provide redundancy pay and employment support services. Qantas is working to identify possible job opportunities across its network and with other carriers in the region.
Singapore will remain an important hub for the Qantas Group. It is the Group’s third-largest international airport and connects to nearly 20 codeshare and interline partners, offering access to multiple cities across Asia.
Jetstar Asia, with Qantas’ support, will meet all its financial commitments to employees, partners, and customers. This includes compensation, operational costs, and final settlements related to the closure.
Capital reallocation to strengthen Qantas Group growth
Qantas will recycle up to $500 million from Jetstar Asia’s fleet capital into its core operations to help improve future performance. Jetstar Asia’s 13 A320 aircraft will be moved to support operations in Australia and New Zealand. These aircraft will replace leased planes in Jetstar Airways’ domestic service to lower its cost base. They will also help Qantas strengthen its regional fleet, particularly for the resources sector in Western Australia.
The reallocation supports Qantas’ broader fleet plans, including the delivery of its first Airbus A321XLR later this month and the A350-1000ULR for Project Sunrise in 2026. 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.” She added, “We’re making disciplined decisions which recycle capital across our business and prioritise it to stronger performing segments as well as strategic growth initiatives like Project Sunrise.”
The closure will result in one-time costs from restructuring and write-downs. These include redundancy payments, foreign currency adjustments, and changes to the Group’s fleet plans. The combined total is projected at $175 million, with one-third expected in FY25 and the rest in FY26. Most of the pre-tax cash impact, around $160 million, will occur in FY26.
However, these expenses will be partially reduced by expected gains in working capital from Jetstar Airways’ growth and related tax adjustments that will affect the Group’s future tax payments.
Jetstar Asia’s financial position worsened in the second half of the fiscal year. It is now expected to post a $25 million underlying EBIT loss. Cyclone Alfred in March 2025 reduced domestic capacity and caused $30 million in damages. The Group’s international capacity grew 9 percent, slightly lower than earlier forecasts, due to labor disruptions affecting Qantas’ leased Finnair services.
Still, Qantas expects strong demand for both its domestic and international routes to continue. Forecasts for unit revenue and capital spending remain steady.
