Singapore’s Jetstar Asia to shut down operations by July 31, 2025
Jetstar Asia Airways will cease all operations by July 31, 2025, as shareholders Westbrook Investments and Qantas Group agreed to wind down the joint venture. The decision follows mounting supplier costs, rising airport fees, and intensifying competition in Southeast Asia’s low-cost airline market.
The Singapore-based carrier will continue flights until the end of July, gradually reducing its network. Qantas Group confirmed in a stock exchange filing that Jetstar Asia’s fleet of thirteen Airbus A320-200s will be redeployed to its core markets in Australia and New Zealand, freeing up approximately AUD 500 million (USD 325.5 million) in fleet capital.
“While Jetstar Asia consistently delivered strong customer service and operational performance, it has not achieved financial returns comparable to Qantas Group’s core markets,” Qantas stated. The airline is expected to post an underlying EBIT loss of AUD 35 million (USD 22.8 million) for the financial year. Qantas expects to incur AUD 175 million (USD 114 million) in one-off closure costs.
The shutdown affects only Jetstar Asia’s Singapore operations under its 3K code and does not impact Jetstar Airways in Australia or Jetstar Japan, the latter operated in partnership with JAL Group and Tokyo Century.
Jetstar Asia’s A320 fleet averages 13.3 years in age, with seven aircraft owned by Qantas and six leased. Operating 172 weekly flights from Singapore Changi, its top destinations include Bangkok, Manila, and Denpasar. This marks Qantas’ second Jetstar joint venture exit, following its 2020 divestment from Vietnam’s Jetstar Pacific.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com