SYDNEY: The Qantas Group announced Wednesday it will close its Singapore-based subsidiary, Jetstar Asia, as part of a strategic restructuring to focus on its core markets in Australia and New Zealand. The move will free up $500 million in capital to support the group’s fleet renewal program.
Jetstar Asia, which has operated for over 20 years, has faced rising costs, high airport fees and intense competition in the intra-Asia market. The airline is expected to post a $35 million underlying loss this financial year.
The closure, set for July 31, will affect 16 intra-Asia routes but will not impact Jetstar Airways’ domestic and international flights in Australia and New Zealand or Jetstar Japan’s operations. Customers with canceled bookings will receive refunds or be rebooked on other airlines where possible.
Qantas Group CEO Vanessa Hudson praised Jetstar Asia’s employees for their service but noted that supplier costs had risen by up to 200%, making the business unsustainable. Affected staff will receive redundancy benefits and job placement support.
The group will redeploy Jetstar Asia’s 13 Airbus A320 aircraft to Australia and New Zealand, creating more than 100 local jobs and reducing operating costs. Some planes will also support Qantas’ regional operations in Western Australia.
The shutdown will incur one-off costs of about $175 million, with a $160 million cash impact, mostly in fiscal 2026.
Qantas confirmed Singapore remains a key hub, with connections through nearly 20 partner airlines. The group continues its fleet modernization, including the delivery of new Airbus A321XLR and A350-1000ULR aircraft.