Qantas to Shut Down Jetstar Asia Operations

Updated Airline News

(June 10, 2025)

Airline Ratings Breakdown

Swear words and all, let's dive into the latest development in the aviation world. This time, it's Jetstar Asia, a low-cost subsidiary of the Qantas Group, that's facing some turbulence.

In an unexpected turn of events, Jetstar Asia, renowned for its superb customer service and rock-solid reliability, has been grappling with escalating challenges. A combination of soaring supplier costs, sky-high airport fees, and fierce regional competition has made it nearly impossible for the airline to generate profits on par with Qantas Group's core markets.

To cut losses, Jetstar Asia is forecast to record an underlying EBIT loss of $35 million in the current fiscal year. And, unfortunately, it's time to say goodbye to the airline's intra-Asia operations based in Singapore. Since this decision doesn't impact Jetstar Airways' domestic and international operations in Australia and New Zealand nor Jetstar Japan's services, Jetstar Airways will keep flying into Asia from Australia, covering essential destinations such as Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea.

But the story doesn't end there. The closure of Jetstar Asia will free up to $500 million in capital, which Qantas plans to reallocate to its strongest operations, in line with its disciplined capital allocation strategy. These funds will be used to renew the fleet, reduce operating costs, expand low-fare offerings, and create new jobs in Australia and New Zealand.

Here's the lowdown on Jetstar Asia's network:

Destinations: 16 ports across 8 markets, with Singapore as the home base and the Qantas Group's largest hub outside Australia. Its destinations include Bangkok, Manila, Broome (seasonal route), Okinawa, Clark, Osaka (Kansai), Denpasar, Penang, Haikou, Phnom Penh, Jakarta, Phuket, Krabi, Surabaya, Kuala Lumpur, and Wuxi.
Employee Support: Affected employees will receive redundancy benefits and employment support services, and Qantas is actively seeking opportunities for them within the Group and with partner airlines.
Customer Impact: Passengers with bookings on cancelled Jetstar Asia flights will be offered full refunds, and the Group will work to reaccommodate them on other airlines where possible.

In closing, Vanessa Hudson, Qantas Group CEO, shared her thoughts:

"Jetstar Asia has been a dynamic player in the Asian aviation market for over 20 years, offering affordable fares, top-notch operational performance, and outstanding customer service. It's a tough day for our incredible Jetstar Asia team, who should hold their heads high and be proud of the massive contribution they've made to aviation in the region."

Stay tuned for more airline news in your inbox – sign up for our newsletter.

[1] Qantas Group

[2] Westbrook Investments

[3] Jetstar Airways

[4] Jetstar Japan

[5] Enrichment Data: Jetstar Asia’s closure will have both financial and operational impacts on the Qantas Group and its footprint in the Asia region. * Financial Impact: A$175 million one-off charge; A$35 million EBIT loss; capital recycling of up to A$500 million. * Operational Impact: 16 intra-Asia routes impacted; no effect on Jetstar Airways/Australia or Jetstar Japan services. * Fleet/Market: 13 A320s redeployed to Australia/NZ; focus shifts to core markets.

The financial struggles of Jetstar Asia, a subsidiary of the Qantas Group, have raised concerns in the airline industry, as soaring costs and fierce competition threaten the airline's profitability.
The latest news in the aviation business points to a significant reallocation of capital within the Qantas Group, following the closure of Jetstar Asia, which will boost finance for stronger operations, potentially leading to fleet renewal, cost reduction, and job creation in Australia and New Zealand.