Qantas Group to wind down Jetstar Asia in strategic restructuring supporting fleet renewal

The Qantas Group has announced a major strategic restructuring as it accelerates its fleet renewal programme, including the closure of Jetstar Asia, its Singapore-based low-cost carrier. The move will unlock up to $500 million (€305 million) in capital, which will be reinvested into Qantas’ core operations in Australia and New Zealand.

After more than two decades of operations, Jetstar Asia will progressively scale back its flight schedule over the next seven weeks, with the final flight scheduled for 31 July 2025. The closure affects only Jetstar Asia’s intra-Asia routes from Singapore. Other Jetstar-branded carriers—Jetstar Airways (Australia and New Zealand) and Jetstar Japan—will continue operations as normal, including flights to popular destinations in Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea.

The decision, taken jointly with majority shareholder Westbrook Investments, follows mounting cost pressures, including supplier costs increasing by up to 200%, rising airport fees, and intensified competition in Southeast Asia. Jetstar Asia is expected to report a $35 million (€21 million) EBIT loss this financial year.

Jetstar Asia’s fleet of 13 Airbus A320 aircraft will be progressively redeployed across Qantas Group’s domestic and regional operations in Australia and New Zealand. This redeployment also aligns with Qantas’ historic fleet investment program, which includes the delivery of its first Airbus A321XLR this month and the highly anticipated Project Sunrise A350-1000ULR from 2026.

Qantas Group CEO Vanessa Hudson said: “Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years. We are incredibly proud of the team and the impact they’ve had in the region. This is a very tough day for them, but it’s a necessary decision to ensure we’re investing where we see the strongest and most sustainable returns.”

Jetstar Asia customers with affected bookings will receive full refunds, with efforts underway to accommodate them on alternative carriers. Affected employees will receive redundancy packages and job placement support, and Qantas is working to identify opportunities within its broader network and partner airlines.

Despite Jetstar Asia’s closure, Singapore will continue to play a critical role in the Qantas network as its third-largest international hub, offering extensive connectivity through nearly 20 codeshare and interline partnerships.

The Group estimates a $175 million (€107 million) financial impact from the closure, which includes restructuring costs, asset write-downs, and foreign exchange translation losses. Approximately one-third of the cost will be recognised in FY25, with the remainder in FY26. The direct pre-tax cash impact of $160 million (€98 million) is expected to be largely offset by improved working capital performance and tax adjustments over time.

Meanwhile, Jetstar Asia’s performance declined in 2H25, with an anticipated $25 million (€15 million) EBIT loss. Additional earnings pressures include a $30 million (€18 million) impact from Cyclone Alfred, which disrupted domestic operations in Queensland, and a reduction in international capacity growth due to industrial action affecting Qantas’ Finnair wet lease.

Despite these headwinds, the Group reports strong underlying demand across both domestic and international markets, with revenue and capital expenditure guidance remaining unchanged.