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• Jetstar Asia will end operations by the end of July, citing growing costs and severe competition, affecting roughly 500 employees and 16 intra-Asia routes.
• Qantas Group intends to redeploy aircraft, help affected employees and customers, and refocus on key markets in Australia and New Zealand to ensure long-term viability.

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 Qantasâ€� 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 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:

Fleet Redeployment

As part of the closure, 13 Airbus A320 aircraft currently operated by Jetstar Asia will be redeployed to Qantas� operations in Australia and New Zealand. This initiative is expected to generate over 100 new jobs in these areas and allow Jetstar Airways to offer lower-cost prices. Qantas intends to reduce its entire cost base by replacing leased aircraft with redeployed jets, hence improving operational efficiency in its key markets.

Singapore’s Continued Importance

Despite the closure, Singapore remains a critical hub for Qantas Group, serving as its third-largest international airport. The organisation maintains approximately 20 code-share and interline partnerships in the region to ensure ongoing connectivity. Qantas will use its other companies and partnerships to keep a strong presence in Singapore, demonstrating its commitment to the Asian market.

Conclusion

The closing of Jetstar Asia is a watershed moment in Qantas Group’s strategy, driven by the necessity to manage rising costs and a competitive aviation industry. While the decision affects over 500 employees and disrupts 16 intra-Asian routes, Qantas is taking steps to aid affected employees and customers by providing redundancy benefits, job placement assistance, and full refunds. The redeployment of aircraft to Australia and New Zealand will support Qantas’ core operations, creating additional jobs and prospects for low-cost travel. As Jetstar Asia conducts its final flights over the next seven weeks, ending on July 31, 2025, Qantas’ strategic changes underscore the company’s commitment to long-term sustainability in a dynamic sector.