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Qantas shuts down Jetstar Asia amid losses and competition

Qantas Group has announced it will shut down its Singapore-based budget carrier Jetstar Asia, one of the region’s key low-cost operators. The airline will cease operations on July 31, 2025, following a sharp rise in costs, intensifying competition, and sustained financial losses.

Jetstar Asia, headquartered at Changi Airport, will end its nearly 20-year run servicing up to 16 routes across Southeast Asia. According to Qantas Group CEO Vanessa Hudson, the economic environment left no viable path forward: operational costs in Singapore have more than doubled, while competition from Scoot, AirAsia, and VietJet has intensified. Despite a post-pandemic market recovery, Jetstar Asia is expected to post an EBIT loss of AUD 35 million for the current financial year.

The closure will affect around 500 employees in Singapore. Qantas has committed to offering severance packages and assistance in job placement—either within the group or with partner carriers. Customers with future bookings will be offered full refunds or rebooking options.

Jetstar Asia’s fleet of 13 Airbus A320 aircraft will be redeployed within the Qantas Group. Six aircraft will replace older jets in Jetstar Australia, four will be assigned to QantasLink in Western Australia to serve resource sector routes, and the remaining three will also stay within the group. These fleet adjustments are expected to create over 100 new jobs across Australia and New Zealand.

Hudson emphasized that closing Jetstar Asia will unlock up to AUD 500 million in capital, which Qantas will reinvest in fleet renewal and its strategic priorities, including the long-haul Project Sunrise program. While one-off shutdown costs are estimated at AUD 175 million, the company sees the move as a necessary step to consolidate its core business and future growth.

Jetstar Asia accounted for about 3% of traffic at Singapore’s Changi Airport. Authorities there have stated that other airlines are ready to absorb that capacity. Nonetheless, the departure of one of the region’s oldest budget carriers marks a significant shift in the competitive landscape of Southeast Asian aviation.

Qantas Group maintains that, despite the difficult decision, the move reflects a focus on long-term resilience and efficiency across the organization.

Illustrative image. AI-generated for editorial purposes only

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