In mid-June 2025, Qantas Group announced a major decision to permanently close its subsidiary, Jetstar Asia. After more than 20 years of operation, Jetstar Asia will cease its services in the Southeast Asia region.
So, what is behind this decision? Here’s the full explanation.
An Overview of Jetstar Asia
Jetstar Asia is a low-cost airline based in Singapore and is part of the Qantas Group. Established in 2004, the airline has focused on providing affordable flights across Southeast Asia and surrounding regions.
Although it operates under Qantas, Australia’s national airline, Jetstar Asia is not fully owned by Qantas. A portion of its shares is held by Singapore-based investors, including Westbrook Investments and Temasek Holdings. This ownership structure has made Singapore’s Changi Airport the airline’s primary operational base.
Jetstar Asia primarily operates flights to major routes within Southeast Asia, including Singapore, Thailand, Indonesia, the Philippines, and Vietnam. Over two decades, the airline successfully connected key destinations in the region, becoming a popular choice for travelers seeking low-cost flights.
Plans for Jetstar Asia’s Permanent Closure
Qantas Group, the parent company of Jetstar Asia, announced that Jetstar Asia would permanently cease operations on July 31, 2025. This closure will affect over 500 employees, who will be supported in transitioning to new job opportunities.
As part of the closure process, Qantas will redeploy 13 Airbus A320 aircraft from Jetstar Asia to strengthen its domestic operations in Australia and New Zealand. While Jetstar Asia’s services will end, Jetstar Airways operations in Australia and Jetstar Japan will remain unaffected.
This move is part of Qantas’ broader restructuring strategy to focus on more profitable markets.
Although Jetstar Asia will stop operating after July 31, 2025, passengers who purchased tickets for travel before that date will still be able to fly as scheduled. Those who booked flights after July 31 will be contacted by Jetstar Asia and offered a full refund.
Passengers with connecting flights to or from Australia, or routes involving Singapore, Bali, Manila, and Osaka, will be offered alternative flight options through the Qantas Group, subject to availability.
Factors Behind Jetstar Asia’s Closure
The decision to close Jetstar Asia follows a careful evaluation of several key challenges affecting the airline’s performance:
Significant Increase in Operating Costs
Jetstar Asia has faced a sharp rise in operating costs, including higher fuel prices, increased airport fees, and supplier costs that have surged by up to 200%. These rising expenses have put pressure on the airline’s profit margins, making continued operations financially unsustainable.
Intensified Competition in Southeast Asia
The low-cost airline market in Southeast Asia has become increasingly competitive, with major players like AirAsia and Scoot offering comparable or even lower fares and more extensive route networks. This intense competition has weakened Jetstar Asia’s market position, making it difficult to maintain market share and achieve stable profitability.
Unfavorable Financial Performance
Despite operating for over 20 years, Jetstar Asia has only recorded profits in six of those years. In the 2025 fiscal year, the airline is expected to post a loss of approximately A$35 million (around IDR 370 billion). This ongoing financial instability is one of the main reasons Qantas has decided to shut down Jetstar Asia and refocus on more lucrative markets.
Strategic Restructuring by Qantas
As mentioned above, the closure of Jetstar Asia is part of Qantas Group’s strategic restructuring to concentrate on more profitable markets, such as Australia and New Zealand.
Qantas has chosen to redirect Jetstar Asia’s aircraft fleet to its domestic operations, which are expected to deliver better profitability and long-term sustainability.
