Singapore LCCs part 3: Jetstar Asia increases focus on interline traffic and secondary destinations

Jetstar Asia is looking for opportunities to further boost yields and expand its network while continuing to refrain from fleet growth. The Singapore based LCC returned to the black in the fiscal year ending 30-Jun-2015 (FY2015) after enduring the most challenging year in its history in FY2014 due to overcapacity and sharp yield declines in its home market.

Jetstar Asia suspended fleet growth in early CY2014 and has since maintained a fleet of 18 A320s. But the carrier has been able to grow ASKs by improving utilisation, enabling it to add capacity in markets that have strong feed from interline or codeshare partners.

Unit revenues have been on the rise over the last several months and Jetstar Asia could see further yield improvements as it adds more new partners and expands existing partnerships. The carrier is also adding in late 2015 three secondary regional routes which are not served by any other LCCs as it tries to reduce its reliance on markets that are still suffering from overcapacity and irrational competition.