Qantas to Shut Down Singapore-Based Jetstar Asia by July 31

Vietnam Insider – Australian airline Qantas announced on Wednesday (June 11) that it will shut down Jetstar Asia, its Singapore-based low-cost subsidiary, by July 31. The decision comes amid rising supplier costs, increased airport charges, and intensifying competition in the Southeast Asian budget airline market.

The closure will unlock AU$500 million (US$326.4 million) in capital, which Qantas plans to reinvest into its ambitious fleet renewal program.

Qantas confirmed that the 13 Airbus A320 aircraft currently operated by Jetstar Asia will be gradually redeployed to Australia and New Zealand.

According to CNN, Jetstar Asia has been heavily impacted by soaring supplier costs, higher airport fees, and escalating competition in the region, making it difficult for the carrier to achieve profit margins comparable to Qantas’ core markets.

Group CEO Vanessa Hudson noted that some supplier costs had surged by as much as 200%, significantly altering the airline’s cost structure. “We are currently undertaking the most ambitious fleet renewal in our history, with nearly 200 firm aircraft orders and hundreds of millions of dollars being invested in our existing fleet,” Hudson said.

Jetstar Asia has faced mounting pressure from major low-cost carriers in the region, such as AirAsia (Capital A) and Scoot (a subsidiary of Singapore Airlines).

Launched over two decades ago, Jetstar Asia was established to tap into the rapidly growing demand for low-cost air travel across Asia. However, the airline is now expected to report an underlying EBIT (earnings before interest and taxes) loss of AU$35 million for the current fiscal year.

Jetstar Asia will cease operations on July 31, with flights continuing as scheduled over the next seven weeks as the airline winds down its services.