Qantas Group to close Jetstar Asia from Jul-2025

Qantas Group confirmed (11-Jun-2025) plans to close Jetstar Asia from 31-Jul-2025. Details include:

• Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operation;
• 13 Jetstar Asia A320 aircraft will be be progressively redeployed to Australia and New Zealand;
• The closure will impact 16 intra Asia routes operated by the LCC from its base in Singapore. It will not impact Jetstar Airways' domestic and international operations in Australia and New Zealand or Jetstar Japan;
• All affected Jetstar Asia employees will be provided redundancy benefits as well as employment support services. Qantas said it is also "actively working to find job opportunities across the group and with other airlines in the region";
• The closure will enable Qantas to recycle up to AUD500 million (USD326.45 million) in capital to support its fleet renewal programme;
• The closure will result in one off redundancy and restructuring costs, as well as the non-cash expensing of historical foreign currency translation losses from equity reserves and asset write downs from consequential changes in the group's fleet structure. The combined impact is estimated to be approximately AUD175 million (USD114.26 million), with approximately one third in FY2025 and the remainder across FY2026, which will be taken outside of underlying earnings;
• The direct pre-tax cash impact will be approximately AUD160 million (USD104.46 million), predominantly in FY2026, including unwinding Jetstar Asia's working capital. This will be materially mitigated by working capital benefits from growth in Jetstar Airways utilising the redeployed aircraft, and from consequential tax adjustments impacting tax payments across the group in FY2026 and future years.

Qantas Group stated Jetstar Asia has been impacted by "rising supplier costs, high airport fees, and intensified competition in the region". Qantas added: "This has fundamentally challenged the low cost airline's ability to deliver returns comparable to the stronger performing core markets in the Group". [more - original PR]