Qantas Group has announced the closure of its Singapore-based subsidiary, Jetstar Asia, as part of a strategic restructure supporting its historic fleet renewal and reinforcing its core operations in Australia and New Zealand. The decision, made jointly with majority shareholder Westbrook Investments, follows financial pressures including rising costs and intense competition in Asia.
Jetstar Asia is forecast to post a AU$35 million underlying EBIT loss this year and will cease operations on July 31, 2025, gradually reducing its flight schedule until closure. The move affects only the intra-Asia routes from Singapore and does not impact Jetstar's operations in Australia, New Zealand or Japan.
Singapore remains a key hub for Qantas, and the Group will honour all financial obligations to staff, customers, and suppliers. Employees will receive redundancy support, and efforts are underway to find alternative employment within the Group or with other airlines.
The closure will release up to AU$500 million in capital, allowing the redeployment of 13 Jetstar Asia aircraft to support fleet renewal in Australia and New Zealand, creating over 100 jobs and reducing operational costs.
The financial impact includes a AU$175 million charge over FY25 and FY26, and a direct pre-tax cash cost of approximately AU$160 million in FY26. These will be partly offset by working capital gains and tax benefits. (US$1.00 = AU$1.50 at time of publication).
