Income to fully reimburse policyholders affected by Jetstar Asia closure

The airline is expected to report a net loss this financial year.

Income Insurance announced it will provide goodwill compensation to eligible policyholders with pre-trip cancellation cover who are affected by the operational cessation of Jetstar Asia. 

Although such airline shutdowns are not typically covered under the insurer’s travel policy, Income is extending support as an exception.

Customers with valid Income Travel Insurance policies—purchased before 11 June 2025, 8 a.m.—may claim for unused, non-refundable travel expenses excluding Jetstar airfares. 

This includes costs for accommodation, tour packages, theme park tickets, and land transport services.

Reimbursement will be provided up to the policy’s stipulated limits, but only when customers are unable to recover these expenses directly from service providers. Both single-trip and annual plans are covered under this arrangement.

The Qantas Group-owned airline is a Singapore based low-cost carrier.

The company 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.