Singapore's Jetstar Asia Part 1: record profitability achieved as interline, codeshare traffic grows

Jetstar Asia is focusing on further growing interline and codeshare traffic while maintaining a very disciplined approach to capacity expansion. The Singapore-based LCC has not grown its fleet over the last three years and again is planning not to add any aircraft in 2017.

Jetstar Asia is now enjoying its highest level of profitability in its 12-year history, despite extremely competitive market conditions. Cost controls, lower fuel prices and surging traffic from full service airline partners, which generate significantly higher average yields, have boosted Jetstar Asia’s outlook.

However, Jetstar Asia is still not yet ready to commit to expansion, recognising that Singapore’s short haul market still suffers from overcapacity. The overcapacity situation could worsen in 2017, as other LCCs expand rapidly. Jetstar Asia is seeking to reduce its exposure to competing with LCCs further in the point-to-point market by attracting even more traffic from full service partners.

This CAPA Premium Analysis article is 1,600 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com