Qantas to Exit Jetstar Japan as LCC Shifts to Japanese Ownership

Qantas Group has reached a preliminary agreement with Japan Airlines Group to divest its 33.32% minority stake in Jetstar Japan, paving the way for a fully Japanese-based ownership structure for the low-cost airline. Under the proposed transaction, Jetstar Japan will transition to a shareholder base comprising JAL Group, the Development Bank of Japan, and Tokyo Century.

As part of the planned restructuring, DBJ will replace Qantas Group as a shareholder, while Tokyo Century intends to retain its existing 16.68% stake. JAL Group currently holds a 50% shareholding and will remain the largest investor following Qantas’ exit. Financial terms of the transaction have not been disclosed and remain subject to final negotiations and regulatory approvals.

Qantas expects to finalise the divestment agreement by July 2026, with the transaction targeted to close by June 2027. Following the completion of the deal, Jetstar Japan will rebrand and drop the “Jetstar” name. The new brand identity is scheduled to be unveiled in October 2026, marking a symbolic shift away from its Australian roots while maintaining continuity in operations.

Despite the ownership and branding changes, Jetstar Japan will continue to operate as an independent low-cost carrier affiliated with JAL Group. The airline confirmed that its current workforce, published schedules, and operational framework will remain unchanged. Existing codeshare agreements with Qantas and Jetstar Airways will also continue, ensuring ongoing connectivity between Japan and Australia.

Jetstar Japan plans to build on its strong position at Tokyo Narita Airport, where it has established itself as a key low-cost operator. The airline aims to further expand its international network from Narita while supporting domestic services and inbound tourism to Japan, particularly as capacity at the airport continues to grow.

JAL Group chief executive and president Mitsuko Tottori said the new ownership structure would allow Jetstar Japan to respond more flexibly to market changes and maximise synergies with JAL Group, supporting sustainable long-term growth for the carrier as a core low-cost player at Narita.

For Qantas, the divestment reflects a strategic refocus on its core Australian businesses operated under the Qantas and Jetstar Airways brands. The group has steadily withdrawn from overseas joint ventures in recent years, having closed Jetstar Asia Airways in Singapore in mid-2025 and exited Jetstar Pacific in Vietnam in 2020. The Vietnamese carrier has since rebranded as Pacific Airlines and continues to operate within the Vietnam Airlines Group.

Jetstar Japan currently operates a fleet of twenty Airbus A320-200 aircraft and three A321-200neo LR jets, supporting a mix of domestic and short- to medium-haul international routes.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com