Australia’s flagship airline, Qantas Airways, will close its Singapore-based low-cost arm, Jetstar Asia, in July. The company cited soaring supplier costs, high airport fees, and intense competition among Asian budget carriers as the main reasons for this move.
1. Staff and Capacity The closure of Jetstar Asia will affect around 500 employees. Its fleet of 13 Airbus A320 aircraft will be redeployed on Qantas Group’s domestic routes in Australia and New Zealand.
2. Financial Impact and Reinvestment Jetstar Asia is expected to record a pre-tax, pre-interest loss of approximately AUD 35 million for the fiscal year ending June 30, 2025. Upon exit, the release of capital tied up in these 13 aircraft—valued at roughly AUD 500 million—will be redirected into Qantas’s core markets.
3. Support for Customers and Staff Passengers on cancelled flights will receive full refunds or assistance in rebooking with other carriers. Affected employees will be offered enhanced compensation packages and opportunities for redeployment within the Qantas Group or other airlines.
4. Other Operations Unaffected Qantas’s other low-cost divisions—Jetstar Airways in Australia and Jetstar Japan—are not impacted by this decision and will continue their international flight schedules as normal.