SYDNEY- Qantas Group (QF) has announced the closure of its Singapore-based low-cost subsidiary, Jetstar Asia (3K), effective July 31, 2025. The strategic move aligns with the Group’s ambitious fleet renewal and capital reallocation plan.
The shutdown will affect 16 intra-Asia routes from Singapore Changi Airport (SIN), but does not impact Jetstar Airways (JQ) or Jetstar Japan (GK) services into or out of Asia.
Photo: By BriYYZ from Toronto, Canada – Jetstar Boeing 787-8 VH-VKA, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=68188859Qantas to Close Jetstar Asia
Jetstar Asia, a key player in Southeast Asia’s budget travel market for over 20 years, is ceasing operations due to rising supplier costs, some up by 200%, and heightened regional competition.
Despite a legacy of reliable service, the airline could not match the profitability of Qantas Group’s core operations in Australia and New Zealand.
The airline is forecasted to report a $35 million underlying EBIT loss in FY25. Operations will wind down over seven weeks, ending on July 31, 2025.
Affected customers will be eligible for full refunds or rebooking on alternate carriers, while staff will receive redundancy support and job placement assistance within the Qantas Group or other regional carriers.
Photo: Clément AlloingRedeployment of Resources
The closure will enable the Qantas Group to recycle up to $500 million in capital. Thirteen Jetstar Asia Airbus A320 aircraft will be transferred to Jetstar Airways and QantasLink operations across Australia and New Zealand. These redeployments will:
- Enhance domestic capacity with more low fares.
- Replace older leased jets to reduce operational costs.
- Support Qantas’ regional routes in Western Australia, particularly in the resources sector.
The redeployment aligns with Qantas’ larger fleet modernization efforts, including the arrival of the Airbus A321XLR this month and the A350-1000ULR under Project Sunrise in 2026.
The total estimated financial impact from the closure is approximately $175 million, including redundancy and restructuring costs, as well as non-cash foreign currency translation losses. About $160 million will be direct cash costs, mostly in FY26.
However, Qantas anticipates partial offsetting of these costs through increased working capital from expanded Jetstar Airways operations and tax-related adjustments.
Photo: Singapore Changi AirportUpdated Group Capacity and Outlook
According to the latest Qantas Group capacity guidance (as shown in the uploaded table):
- Group Domestic growth remains modest at +1% for FY25, rising to +5% in 1Q26.
- Group International shows stronger expansion, up +12% in FY25.
- Jetstar International leads international growth with a +25% increase in FY25 capacity.
- The overall group capacity is forecasted to grow by +8% in FY25, slightly easing to +5% in 1Q26.
Temporary headwinds included Cyclone Alfred, which impacted Queensland routes and reduced Group Domestic earnings by $30 million, and industrial action affecting Qantas’ Finnair wet lease capacity.
Despite the closure of Jetstar Asia, Singapore (SIN) remains Qantas Group’s third-largest international airport. Qantas will continue leveraging interline and codeshare agreements with nearly 20 Asian carriers from the hub to ensure connectivity across the region.
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