Qantas Group to shut Jetstar Asia operations from 31 July 2025 amid strategic shift

Around 16 intra-Asia routes will be affected as the Group focuses on fleet renewal and core markets in Australia and New Zealand.

Qantas Group has announced it will close Jetstar Asia, its Singapore-based low-cost airline, by 31 July 2025. The decision comes as part of a strategic restructure aimed at strengthening the Group’s core operations in Australia and New Zealand as well as supporting its major fleet renewal programme.

A total of 16 intra-Asia routes will be affected by the closure. However, this decision will not impact Jetstar Airways (JQ) or Jetstar Japan (GK) services into Asia, and Jetstar Airways’ international services to and from Australia will continue as normal.

Jetstar Asia to shut after over two decades in the region

Founded over 20 years ago, Jetstar Asia has played a key role in expanding air travel across Southeast Asia. In recent years, however, the airline has come under increasing cost pressures including supplier fees rising as much as 200%, high airport charges, and intense competition which have challenged its ability to deliver sustainable returns.

As a result, Qantas Group and Jetstar Asia’s majority shareholder, Westbrook Investments, have jointly decided to cease the airline’s operations. Jetstar Asia is projected to post an underlying EBIT loss of AU$35mn for this financial year. Flights will continue under a reduced schedule over the next seven weeks, ceasing entirely on 31 July 2025.

Vanessa Hudson, CEO, Qantas Group said: “Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200%, which has materially changed its cost base.”

She added: "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."

With the support of Qantas, Jetstar Asia will continue to meet all outstanding obligations to customers, employees, and suppliers with the support of Qantas.

All affected Jetstar Asia employees will receive redundancy packages and employment support services, with Qantas Group working to identify internal job placements and opportunities with regional partners.

Customers with existing bookings on affected flights will be offered full refunds and assistance with alternative travel arrangements where possible.

Financial impact and forward strategy

The closure will free up to AU$500mn in capital, which Qantas intends to reinvest into its fleet renewal and growth in Australia and New Zealand. The 13 Airbus A320 aircraft currently operated by Jetstar Asia will be redeployed to support core domestic and regional operations, reduce leasing costs, and feed into the Group’s most ambitious fleet upgrade to date.

The Group expects a one-off financial impact of AU$175mn, including redundancy and restructuring costs, asset write-downs, and currency translation losses with about a third to be recognised in FY25. A direct cash outflow of AU$160 million is forecast for FY26 but is expected to be offset by operational efficiencies and tax-related benefits across the Group.

Jetstar Asia is also expected to record an AU$25mn EBIT loss for the second half of the financial year. Separately, Qantas’ domestic capacity growth was affected by Cyclone Alfred, incurring an estimated AU$30mn impact. While international capacity is forecast to grow by 9%, this is slightly below prior guidance due to industrial action disrupting a Finnair wet lease. Nevertheless, demand across both domestic and international segments remains strong, with revenue and capital expenditure tracking as previously guided.

Despite the closure, Qantas maintains that Singapore remains its third-largest international airport and a critical part of its network. The Group will continue to offer connections from Singapore through nearly 20 codeshare and interline partners across Asia.

For further details, check out Qantas Group’s full update here.