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Manila Bulletin devider Business devider Trade & Industry devider Qantas closes Jetstar Asia to streamline operations

Qantas closes Jetstar Asia to streamline operations

Published Jun 11, 2025 05:45 pm

The Qantas Group is closing its intra-Asia airline, Jetstar Asia, to strengthen its core businesses in Australia and New Zealand amid growing challenges.

In a statement, Vanessa Hudson, Qantas Group chief executive officer, said the closure of Jetstar Asia would free up about $500 million in capital, which will be reinvested into stronger-performing segments and strategic growth initiatives.

Singapore-based Jetstar Asia will cease operations on July 31, 2025, following a progressively reduced schedule over the next seven weeks. 

The closure is a direct response to growing challenges, including rising supplier costs (up to 200 percent), high airport fees, and intensified competition, which have collectively impacted the airline's ability to deliver comparable returns to the group's stronger core markets. 

The airline was expected to incur a $35 million underlying earnings before interest and taxes (EBIT) loss in the current financial year prior to this decision.

The closure will impact only 16 intra-Asia routes, with no changes to Jetstar Airways and Jetstar Japan services into Asia, nor Jetstar Airways' international services in and out of Australia. Jetstar Asia’s 13 Airbus A320 aircraft will be progressively redeployed to Australia and New Zealand.

Qantas said this redeployment is expected to create more than 100 local jobs, offer more low fares, and replace leased aircraft in Jetstar Airways' domestic operations, thereby reducing its cost base.
Some aircraft will also support fleet renewal in Qantas’ regional operations, particularly those servicing the resources sector in Western Australia.

"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 Asiam.

She 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." She noted that despite their best efforts, significant increases in supplier costs materially changed Jetstar Asia's cost base.

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