Qantas has announced the closure of its Singapore-based budget airline, Jetstar Asia, in a strategic move to focus on strengthening its core operations in Australia and New Zealand.
The shutdown, effective from 31st of July will see around 500 jobs lost in the Asia region. However, Qantas plans to redeploy Jetstar Asia’s 13 Airbus A320 aircraft to its home markets, aiming to increase low-fare options and generate over 100 local jobs.
The decision will free up $500 million for fleet renewal, part of the airline’s ambitious plan involving nearly 200 new aircraft orders and significant investment in its current fleet.
Qantas Group CEO Vanessa Hudson cited skyrocketing supplier costs—some up by 200%—as a major reason for the closure, alongside rising airport fees and intense regional competition.
Jetstar Asia, launched over 20 years ago, will continue flights for the next seven weeks until the closure takes effect. The airline is expected to report a $35 million underlying EBIT loss this financial year.
