Qantas Group to Shut Down Intra-Asia Low Cost Subsidiary Jetstar Asia

Qantas Group has today announced a strategic restructure that will support their historic fleet renewal program , while strengthening their core businesses in Australia and New Zealand.  This includes the shutdown of their intra-Asia low-cost subsidiary Jetstar Asia.

Qantas Group to Close Intra-Asian Low Cost Subsidiary Jetstar Asia - Courtesy Jetstar

On Wednesday (June 11, 2025), Qantas Group announced a strategic restructure, which includes the closure of their intra-Asia airline, Jetstar Asia, enabling the group to recycle up to $500 million in capital, supporting their historic fleet renewal.  The move has been designed to allow the Group to focus on their core businesses in Australia and New Zealand.  As part of the restructure, 13 Jetstar Asia Airbus A320s will be redeployed to Australia and New Zealand.  In total, only 16 intra-Asia routes will be impacted by the closure of Jetstar Asia, and there will be no changes to Jetstar Airways and Jetstar Japan service to Asia. 

In Wednesday’s announcement, Qantas Group’s CEO, Vanessa Hudson, said,

“Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.  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. Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base.

“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.

“We are currently undertaking the most ambitious fleet renewal program in our history, with almost 200 firm aircraft orders and hundreds of millions of dollars being invested into our existing fleet.  We’re making disciplined decisions which recycle capital across our business and prioritise it to stronger performing segments as well as strategic growth initiatives like Project Sunrise.”

In recent years, Jetstar Asia, the Group’s Singapore-based low-cost subsidiary has faced growing challenges, and the decision has been taken, together with the majority shareholder, Westbrook Investments, to close the airline.  In recent years, Jetstar Asia has been impacted by rising supplier costs, high airport fees, and intensified competition in the region.  The carrier is expected to report a $35 million underlying EBIT loss this financial year, prior to closure.  Jetstar Asia will continue to operate flights on a progressively reduced schedule, prior to its final day of operation on July 31, 2025. 

Customers with existing Jetstar Asia bookings for canceled flights will be offered full refunds, and the Group will re-accommodate customers on other airlines where possible.  Impacted Jetstar Asia team members will be provided redundancy benefits, as well as employment support services.  Singapore will remain a critical hub for the Qantas Group as the company’s third largest international airport.  Qantas also offers seamless connectivity via Singapore through nearly 30 codeshare and interline partnerships to a variety of destinations across Asia.  The Group will ensure Jetstar Asia continues to meet its financial obligations to suppliers, employees and customers. 

Source: Qantas Group