Qantas Group shuts down Jetstar Asia

The move is expected to recycle up to $500m in capital.

Qantas Group will shut down Jetstar Asia, its Singapore-based low-cost carrier, by 31 July 2025.

In a statement, the group said the closure is part of a strategic restructure aimed at redirecting $500m in capital to support fleet renewal and strengthen core operations in Australia and New Zealand.

Thirteen Airbus A320 aircraft from Jetstar Asia will be redeployed to Australia and New Zealand, creating more than 100 new local jobs.

Sixteen intra-Asia routes will end, but services operated by Jetstar Airways and Jetstar Japan into Asia will remain unchanged. Jetstar Asia is expected to report a $35m EBIT loss this financial year.

The closure follows a period of rising supplier costs—up to 200% increases—combined with high airport fees and increasing competition in the region, which have made it difficult for the airline to deliver returns comparable to other Qantas Group businesses.

Qantas CEO Vanessa Hudson said the airline had provided exceptional service but its costs had become unsustainable, and the closure allows Qantas to focus investment on its strongest and fastest-growing areas.

Affected customers will receive full refunds and alternative travel options where possible.

Employees will receive redundancy packages and job support, and Qantas is working to place them in roles across the Group or with partner airlines.

The 13 aircraft will replace leased planes to lower operating costs, expand Jetstar Airways’ domestic network, and support Qantas’ regional services in Western Australia's resources sector.

The move aligns with Qantas’ broader fleet strategy, including the delivery of its first Airbus A321XLR this month and the first Project Sunrise Airbus A350-1000ULR in 2026.

The total financial impact of the closure is estimated at $175m, including around $160 million in pre-tax cash costs, mostly in FY26, with some offset from working capital and tax benefits.

Jetstar Asia is also expected to post a $25 million EBIT loss in the second half of FY25.

Qantas' domestic earnings were also affected by Cyclone Alfred, which had a $30m impact.

International capacity growth is now forecast at 9%, down from previous guidance due to disruption from industrial action affecting Finnair-operated wet lease flights.

Despite these challenges, Qantas reports strong demand across both domestic and international markets, with revenue and capital expenditure guidance remaining unchanged.