Qantas announces closure of Jetstar Asia amid financial struggles

Qantas Group CEO Vanessa Hudson stated: “Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years... We are incredibly proud of the Jetstar Asia team... Despite their best efforts... I want to sincerely thank and acknowledge our incredible Jetstar Asia team who should be very proud of the impact they have had on aviation in the region over the past two decades.”

Customers affected by cancellations will receive full refunds or be accommodated on other airlines where possible. Employees impacted by the closure will receive redundancy benefits and support services.

Singapore remains an important hub for Qantas with access to nearly 20 codeshare partners serving broader Asia. Qantas plans to redirect up to $500 million from Jetstar Asia's closure into fleet renewal and growth within Australia and New Zealand using redeployed Airbus A320s.

Hudson added: “We are currently undertaking the most ambitious fleet renewal program in our history... We’re making disciplined decisions which recycle capital across our business.”

The closure involves one-off costs totaling $175 million related to redundancies and restructuring among others. The pre-tax cash impact is estimated at $160 million but is expected to be offset by benefits from aircraft redeployment.

In recent performance updates for 2H25: Jetstar Asia reported an underlying EBIT loss of $25 million; domestic capacity growth was hindered by Cyclone Alfred; international capacity forecasts were lowered due to industrial action affecting wet leases.

Despite these issues, Qantas reports continued strong demand across both Domestic and International markets with unit revenue and capital expenditure remaining aligned with guidance.