Singapore-based Jetstar Asia has announced it is closing at the end of July in a statement on its website. The decision to close the airline was made by 49% shareholder Qantas and majority shareholder Westbrook Investments. Jetstar Asia has been in operation for around 20 years.
The airline’s statement said: “Following an extensive and careful review of the Jetstar Asia (3K) airline, the very difficult decision has been made to progressively reduce the airlines’ schedule before permanently ceasing operations on July 31, 2025. The decision doesn't impact any Jetstar Airways (JQ) flights, including JQ international flights between Australia and Southeast Asia (SEA), or any Jetstar Japan (GK) flights."
Giving a reason for the closure, the statment said that the "business has been increasingly challenged in recent years by escalating supplier costs, airport fees and aviation charges as well as growing capacity and competition in the region.”
The statement continued: “Despite our best efforts to offset these rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on Jetstar Asia’s ability to offer low fares. This is incredibly difficult news for our Jetstar Asia team members and customers, and the Jetstar Group is committed to providing support during this time with a range of options in place for all those impacted."
Qantas Group said the decision enables Qantas to recycle up to A$500 million ($325 million) in capital, supporting its fleet renewal program, with 13 Jetstar Asia Airbus A320 aircraft to be redeployed to Australia and New Zealand.
16 intra-Asia routes will be impacted by the closure of Jetstar Asia with no changes to Jetstar Airways and Jetstar Japan services into Asia. All of Jetstar Airways international services in and out of Australia remain unchanged.
Jetstar Asia is expected to post a A$35 million underlying EBIT loss this financial year, prior to the closure decision. Jetstar Asia will continue to operate flights for the next seven weeks on a reduced schedule, before its final day of operation on July 31, 2025.
Qantas said the closure of Jetstar Asia impacts the intra-Asia routes operated by the airline from its base in Singapore. It doesn't impact Jetstar Airways’ domestic and international operations in Australia and New Zealand or Jetstar Japan. Jetstar Airways will continue to fly from Australia into Asia including to all its popular destinations across Singapore, Thailand, Indonesia, Vietnam, Japan and South Korea.
Qantas Group chief executive officer Vanessa Hudson commented: "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 SEA."
Hudson added: “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%, 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.”
Qantas said that Singapore remains a “critical hub” for the group as its third largest international airport.
The closure of Jetstar Asia will result in one-off redundancy and restructuring costs as well as the non-cash expensing of historical foreign currency translation losses from equity reserves and asset write-downs from consequential changes in the group’s fleet structure.
The combined impact is estimated to be approximately A$175 million with around a third in FY 2025 and the remainder across FY 2026, which will be taken outside of underlying earnings. The direct pre-tax cash impact will be approximately A$160 million, predominantly in FY 2026, including unwinding Jetstar Asia’s working capital, Qantas said.
This will be mitigated by working capital benefits from growth in Jetstar Airways utilising the redeployed aircraft, and from tax adjustments impacting tax payments across the group in FY 2026 and future years, Qantas said.The performance of Jetstar Asia deteriorated in the second half and is expected to post an underlying EBIT loss of A$25 million.
Qantas said that group domestic capacity growth for the half is lower than previous guidance, largely due to Cyclone Alfred in March, which impacted flying across large parts of Queensland, Qantas said.
The disruptions from the storm will have a A$30 million impact on earnings. Group international capacity for the half is expected to grow by 9%, 3% lower than previously guided due to the impact of industrial action on Qantas’ Finnair wet
