Qantas announces major shake-up after closing Jetstar Asia

Qantas has announced it will close Jetstar Asia as part of a “strategic restructure” aimed at strengthening its core domestic and New Zealand business.

Qantas has announced it will close Jetstar Asia, its Singapore-based budget airline after two decades in the air, as it looks to focus on the domestic market.

In an announcement to the ASX Qantas said the closure of Jetstar Asia will enable the airline to recycle up to $500m in capital and support its fleet renewal program.

The airline said it would redirect 13 Jetstar Asia Airbus A320 aircraft to be progressively redeployed to Australia and New Zealand, adding 100 local jobs in the process.

The decision will have zero impact to all of Jetstar and Jetstar Japan’s flying into Asia.

None of the highly popular routes they operate into Indonesia, Vietnam, Japan, Singapore are affected.

The restructure could see up to 500 jobs axed from its Singapore operation.

A statement to the ASX said employees of Jetstar Asia would be provided with redundancy benefits and employment support services, and Qantas was working to find job opportunities elsewhere in the group or with other airlines in the region.

Qantas announces it is axing its Jetstar Asia flights. Picture: NewsWire / Luis Enrique Ascui

The airline said the closure would have a cost of approximately $175m due to one-off redundancy and restructuring costs with the first third coming this financial year, with the rest coming in 2026.

Qantas Group CEO Vanessa Hudson said Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.

“We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance and exceptional customer service. This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base.”

Qantas chief executive Vanessa Hudson thanked the Jetstar Asia crew. Picture: Qantas/NewsWire

“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.”

Qantas said the closure came after a deterioration in Jetstar Asia’s earnings, with the airline facing strong competition from AirAsia and Singapore’s own national carrier.

Qantas said it expected the subsidiary to post an underlying earnings loss of $25 million in the six months to June 30.

Originally published as Qantas announces major shake-up after closing Jetstar Asia