On 11 June 2025, the Qantas Group announced a “strategic restructure,” revealing the closure of its Singapore-based low-cost subsidiary, Jetstar Asia, by the end of July 2025. Launched in 2004 to capitalize on Asia’s booming budget travel market, the airline will cease operations after 21 years. All passengers with bookings after July 31, 2025, will receive full refunds, and reduced services will continue until then, with prompt notifications sent for any flight disruptions.
Jetstar Asia has grappled with significant hurdles, including high airport fees, competition from regional budget rivals and a projected AU$35 million (€19.74 million) loss for the 2025 financial year. These challenges, combined with supplier costs, surging have rendered the airline’s operations financially unviable. “We have seen some of Jetstar Asia’s supplier costs increase by up to 200%, which has materially changed its cost base,” said Qantas Group Chief Executive Vanessa Hudson in a statement.
The closure will disrupt 16 intra-Asia routes linking Singapore to destinations such as Indonesia, Malaysia, and the Philippines. Furthermore, over 500 employees will face layoffs, though Jetstar Group Chief Executive Stephanie Tully reaffirmed the company’s dedication to supporting its workforce. “We have an exceptional team who provide world-leading customer service and best in class operational performance, and our focus is on supporting them through this process and helping them to find new roles in the industry,” she said. All affected employees will receive redundancy benefits.
According to Qantas Group, the closing of its intra-Asia airline will free up to $500 million in capital, which will then be redirected towards upgrading the group’s aircraft fleet. Up to 13 Airbus A320 aircrafts currently operated by Jetstar Asia will be reassigned to routes within Australia and New Zealand, enhancing operational efficiency.
The closure will not impact Jetstar Airways and Jetstar Japan operations within Asia, nor will it affect any of Jetstar Airways’ international flights to and from Australia and connect locations like Thailand, Indonesia, and Japan. Despite the shutdown, Qantas will still offer budget-friendly flights to various destinations through its Jetstar Airways brand.
Jetstar Asia began operations in 2004 as Qantas sought to tap into Asia’s expanding low-cost airline market but has encountered growing competition from other budget carriers such as AirAsia and Scoot. Jetstar Asia’s closure reflects the intense competition in Asia’s low-cost sector, where rivals have leveraged larger fleets and lower operating costs to dominate.
