Jetstar Asia to Shut Down Operations in July 2025
Jetstar Asia, the Singapore-based low-cost airline and a subsidiary of the Qantas Group, will cease operations at the end of July 2025 as part of a major strategic restructuring by its parent company. The decision was officially announced by Qantas Group on June 11, 2025, marking the end of Jetstar Asia’s operations after years of financial challenges and increasing competition in the region. The closure reflects a shift in Qantas Group’s priorities as it reallocates resources to stronger performing areas within its global portfolio.
According to the statement from Qantas, Jetstar Asia has been facing mounting pressures that have made its business unsustainable. The airline has struggled with escalating supplier costs, higher airport charges, and intensified competition from both regional and global low-cost carriers. These factors have severely impacted Jetstar Asia’s ability to generate adequate returns, forcing Qantas to reevaluate its position in the competitive Southeast Asian market. The group projected Jetstar Asia would report an underlying EBIT loss of AU$35 million for the current financial year before deciding on the closure.
The shutdown will allow Qantas Group to unlock up to AU$500 million in fleet capital, which will now be redirected into its primary businesses and growth initiatives. Vanessa Hudson, CEO of Qantas Group, emphasized that this decision aligns with the airline’s broader fleet renewal program, which is one of the most extensive in its history. The group currently has nearly 200 firm aircraft orders and continues to invest heavily in upgrading and expanding its existing fleet. Hudson noted that Qantas is making disciplined decisions to optimize capital allocation and focus on segments that offer better long-term returns, including its ambitious Project Sunrise initiative.
Jetstar Asia will maintain limited flight operations for the next seven weeks, gradually reducing its schedule until its final day of service on July 31, 2025. During this transition period, the airline is working to minimize disruption to its customers. Passengers booked on flights affected by the closure will be offered full refunds, and the airline group is attempting to rebook travelers on alternative carriers whenever possible to accommodate their travel needs.
Importantly, the closure of Jetstar Asia will only affect the intra-Asia routes operated out of its Singapore hub. Jetstar Airways’ other operations will continue as usual, including its domestic and international flights in Australia and New Zealand, as well as Jetstar Japan’s services. Jetstar Airways will also continue flying into Asia from Australia, maintaining service to destinations in Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea. This ensures that Qantas Group continues to have a significant presence in the Asian travel market despite Jetstar Asia’s closure.
The decision to shut down Jetstar Asia underscores the shifting dynamics of the low-cost carrier sector in Asia, where increasing operational costs and competitive pressures have made profitability more difficult to achieve. For Qantas Group, the move allows for a sharper focus on its core markets and future growth opportunities while maintaining connectivity to key destinations across the Asia-Pacific region.
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