Qantas Group will close its Singapore-based low-cost carrier Jetstar Asia by July 31, 2025, as part of a strategic overhaul to focus capital on its core businesses and support a major fleet renewal program.
The decision will enable the Australian carrier to recycle up to A$500 million in fleet capital by redeploying Jetstar Asia’s 13 Airbus A320 aircraft to domestic and regional operations in Australia and New Zealand.
The aircraft will help lower costs and create over 100 jobs, including roles supporting Qantas’ regional services in Western Australia’s mining sector.
Jetstar Asia, which has operated for over 20 years, has faced rising supplier and airport costs, as well as increased competition in the region.
The airline is expected to post a A$35 million underlying EBIT loss for the current fiscal year.
The closure impacts only Jetstar Asia’s 16 intra-Asia routes operated from Singapore and does not affect Jetstar Airways or Jetstar Japan operations. Qantas’ international services to and from Asia will remain unchanged.
Qantas Group CEO Vanessa Hudson said the restructure is aimed at improving long-term returns and accelerating fleet modernization.
Qantas is in the midst of its largest-ever fleet renewal program, which includes nearly 200 firm aircraft orders. The redeployment of Jetstar Asia’s aircraft will also help phase out leased planes in Australia, lowering operating costs.
Qantas will provide full refunds or alternative arrangements for affected passengers. Employees will receive redundancy benefits and job placement assistance within the Qantas Group or with other carriers.
The financial impact includes a one-off charge of A$175 million, with about a third recognized in FY25. Direct pre-tax cash outflows are estimated at A$160 million, mostly in FY26, partially offset by working capital benefits and tax adjustments.
Despite the closure, Singapore remains a key hub for Qantas, with the carrier maintaining nearly 20 codeshare and interline partnerships in the region.
Business News Asia