Qantas has announced it will wind down operations of its Singapore based low-cost carrier, Jetstar Asia, with a focus on consolidating the group’s core operations in Australia and New Zealand.
The closure, set to take full effect by 31 July 2025, will see Jetstar Asia progressively reduce its flying schedule over the next seven weeks. Sixteen intra-Asia routes will be impacted, although Jetstar Airways and Jetstar Japan services into Asia will remain unaffected.
Qantas says the decision, made jointly with Jetstar Asia’s majority shareholder Westbrook Investments, will allow the Group to redirect up to $500 million in capital, primarily to support its ongoing fleet renewal programme and other growth priorities. As part of the transition, 13 Jetstar aircraft will be redeployed to Australia and New Zealand, strengthening domestic and trans-Tasman capacity.
The financial impact of the shutdown is estimated at $175 million in underlying earnings, with one-third expected in FY25 and the remainder across FY26. Jetstar Asia has faced mounting operational pressures in recent years, including soaring supplier and airport costs some reportedly rising by as much as 200% alongside intensified competition in the region.
Qantas Group CEO Vanessa Hudson acknowledged the significance of the decision saying, “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.”
The move marks a major shift in Qantas’ international low-cost strategy and underscores the Group’s renewed focus on domestic and regional resilience amid changing market dynamics in Asia.