Qantas Group has announced it will shut down its Singapore-based low-cost carrier, Jetstar Asia, with the airline ceasing operations on 31 July 2025. The decision comes as the group grapples with surging supplier costs, escalating airport fees and intensifying competition within the Southeast Asian budget aviation market.
Jetstar Asia will continue to operate flights over the next seven weeks before winding down. The closure affects 16 regional routes, with customers holding bookings on cancelled services offered full refunds. Where feasible, passengers will be re-accommodated on alternative airlines.
A spokesperson confirmed that more than 500 employees will be impacted by the cessation of operations. Qantas stated that it is committed to supporting affected staff through redundancy benefits, career transition assistance, and by identifying redeployment opportunities within the Qantas Group and among regional airline partners.
The airline currently serves destinations across Malaysia, Indonesia, Thailand, the Philippines, China, Sri Lanka, Japan and Australia, operating approximately 180 weekly flights. Its exit will lead to the termination of exclusive services on four routes: Broome, Labuan Bajo, Okinawa and Wuxi.
Jetstar Asia’s fleet of 13 Airbus A320 aircraft will be progressively redeployed to support operations in Australia and New Zealand. Other Jetstar-branded carriers, including Jetstar Airways in Australia and New Zealand and Jetstar Japan, remain unaffected.
Changi Airport Group (CAG), in response to the development, expressed regret over the airline’s withdrawal but acknowledged the commercial rationale behind the move. CAG affirmed its commitment to supporting passengers through the transition period and to mitigating disruption. The group is engaging with other carriers to maintain connectivity on affected routes, particularly those exclusively served by Jetstar Asia.
In 2024, Jetstar Asia carried approximately 2.3 million passengers through Changi Airport, representing around 3% of the airport’s total passenger traffic. While the airline had expanded its fleet to 18 aircraft in 2019, this was scaled back during the COVID-19 pandemic, later stabilising at 13 aircraft.
The Singapore Manual and Mercantile Workers’ Union (SMMWU), an affiliate of NTUC which has represented Jetstar Asia staff since 2009, is currently in discussions with management to ensure fair severance packages. The union is also providing job placement support and career advisory services across the aviation and aerospace sectors.
The Qantas Group cited unsustainable cost increases as a primary factor in the closure, with supplier expenses rising by as much as 200% in some areas. Qantas Group CEO Vanessa Hudson acknowledged the contribution of the Jetstar Asia team over the past two decades and reaffirmed the group’s focus on its core markets.
The closure is expected to result in a one-off financial impact of approximately A$175 million (US$114 million), with one-third recognised in the FY2025 results and the remainder in FY2026. However, the group noted that the exit will unlock A$500 million in capital to support its wider fleet renewal strategy.
Jetstar Asia is forecast to record an underlying loss of A$35 million before interest and taxes in the current financial year.
-Reuters
