Qantas Group has confirmed plans to shut down Jetstar Asia, its Singapore-based budget airline, by the end of July 2025. The move is part of a broader strategy to streamline its operations and focus on more profitable routes.
Jetstar Asia, which first took off in 2004 and is 49% owned by Qantas, has struggled in recent years, especially in the highly competitive post-pandemic market of Southeast Asia. Despite the rebound in international travel, flying shorter routes around Asia hasn’t been sustainable. The airline is expected to post a $35 million loss this financial year, even before factoring in the closure.
Flights will continue for now but will wind down over the next seven weeks, ending completely on 31 July 2025.
The shutdown only affects Jetstar Asia’s 16 regional routes operated out of Singapore. It doesn’t impact other parts of the Jetstar network—including Jetstar Airways’ flights within Australia and New Zealand, or Jetstar Japan. Travellers can still fly Jetstar between Australia and popular Asian destinations like Singapore, Bali, Bangkok, and Tokyo.
Importantly, Qantas is not pulling out of Singapore. The city remains the airline group’s third busiest international hub. Qantas will continue to serve the region via partnerships with nearly 20 codeshare and interline carriers, offering broad connections across Asia from Changi Airport.
“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 Asia. 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. Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base. I want to sincerely thank and acknowledge our incredible Jetstar Asia team who should be very proud of the impact they have had on aviation in the region over the past two decades.”
Vanessa Hudson, Qantas Group CEO
Financial impact of the closure of Jetstar Asia
The closure of Jetstar Asia will cost Qantas Group an estimated $175 million, mostly due to staff redundancies, restructuring, asset write-downs, and accounting for past currency translation losses. About a third of this cost will hit in FY2025, with the rest spread across FY2026. These will be recorded separately from the Group’s underlying earnings.
In terms of actual cash outflow, Qantas expects a pre-tax impact of around $160 million, mainly in FY2026. This includes winding down Jetstar Asia’s day-to-day finances. However, this cost will be partly offset. Savings and benefits are expected from Jetstar Airways’ planned growth using the aircraft taken over from Jetstar Asia, along with tax adjustments that will reduce Qantas Group’s tax payments in FY2026 and beyond.
Key Reasons for Closure
- Post-COVID Shift: Australian travellers now prefer direct long-haul flights over transiting through Southeast Asia, reducing Jetstar Asia’s strategic relevance.
- Rationalisation of Resources: Qantas aims to focus its network growth on more profitable routes operated by Qantas and Jetstar in Australia and Japan.
- Fleet Realignment: The 13 Airbus A320s currently used by Jetstar Asia will be redeployed to other parts of the Jetstar Group.
Impact and Timeline
| Aspect | Details |
|---|---|
| Final Operations | By end of FY2025 – 31 July 2025 |
| Fleet Affected | 13 mid-life Airbus A320 aircraft. To be redeployed to Australia and New Zealand. |
| Employees Impacted | Over 300, mostly based in Singapore |
| Ownership Structure | 49% Qantas, 51% Westbrook Investments |
| Staff Support | Redeployment options and outplacement services |
What This Means for Travellers
For years, Jetstar Asia has offered affordable options to key Asian cities from Singapore, including Bangkok, Kuala Lumpur, and Manila. Its exit reduces the number of low-cost choices for intra-Asia travel from Changi Airport, potentially reshaping the region’s budget airline landscape.
From Jetstar Asia’s mobile app.
Information for customers with Jetstar Asia (3K) bookings:
Jetstar Asia (3K) flights will continue to operate until 31 July 2025 with a progressively reduced schedule.
For customers with bookings prior to 31 July 2025, there will be some changes to Jetstar Asia’s usual schedule, and we will reach out directly if there are any changes to your upcoming flight.If you are not contacted with any schedule changes, your original flight will operate as planned, and there is no action needed. Please proceed to the airport as normal. You can also check your flight status here in the lead up to your departure. Customers with bookings from 31 July 2025 onwards are eligible for a full refund to your original form of payment. We will contact you directly to discuss your options. You can also visit Manage Booking to secure your refund now.Flights remain on sale for Jetstar Asia (3K) flights operating until 31 July 2025.
Additional information for customers
Vouchers: If you have a current Jetstar voucher related to travel with Jetstar Asia (3K) with an available balance, you’ll be contacted in August to arrange converting your remaining voucher balance to a monetary refund.
Club Jetstar memberships: We will commence processing refunds from August, which will be automatically applied directly to the card you used to purchase the membership.We sincerely thank our customers for their support during the transition towards closure.
Need more information?For further information, please visit the Jetstar Asia info page
If you purchased travel insurance from Etiqa Insurance Singapore, find out how you can claim.
