2025-06-11
Jetstar Asia is set to close at the end of July after more than 20 years in service, in a move Qantas says reflects a cost base that has been squeezed by supplier inflation, high airport charges and intensified competition across the region.
The Singapore-based low-cost carrier, 51% owned by Westbrook Investments and 49% owned by Qantas, will gradually reduce services over the next seven weeks before stopping flights altogether on 31 July. More than 500 employees will be laid off, although Qantas said affected workers would receive redundancy benefits and support finding new roles in the industry.
The shutdown is not expected to affect Jetstar Airways in Australia or Jetstar Japan. Qantas said it will use the closure to redirect capacity and capital toward the rest of its network, including the renewal of aircraft and the redeployment of 13 planes across Australia and New Zealand. The Australian carrier also said the decision will release A$500m that can be put toward fleet investment.
For passengers, the airline said bookings on cancelled services will be refunded in full. Customers with flights after the closure date will be contacted, and some may be rebooked on other Qantas Group services. Travellers who booked through travel agents or separate airlines have been told to contact those providers directly.
Jetstar Asia was launched in 2004 as Qantas tried to build a foothold in the fast-growing budget travel market in Asia. The strategy helped widen access to low-cost flying across the region, but the carrier has been increasingly pressured by rivals including AirAsia and Scoot. Qantas said supplier costs at Jetstar Asia had risen by as much as 200%, a change that materially altered the economics of the business.
The closure also underlines how much of the group’s Asian low-cost model now sits in Australia rather than Singapore. Qantas continues to operate Jetstar-branded services into parts of Asia from Australia, and it says those routes will remain in place. The company’s message is that the Singapore airline has become structurally harder to sustain, while the broader Jetstar network still has room to grow.
The decision also comes as the carrier expects Jetstar Asia to post a A$35m loss this financial year. That loss, combined with the cost pressures and the competitive backdrop, appears to have pushed the business beyond the point where Qantas believes it can justify continued support.
For Singapore’s aviation market, the closure removes one of the earliest and best-known budget carriers in the city-state. For Qantas, it is a sharp retreat from a long-running regional bet, but one the airline now says is necessary to strengthen the rest of the group.
