The Qantas Group and Japan Airlines (JAL) have signed a binding agreement that will see the Qantas Group exit Jetstar Japan through a share buyback, paving the way for a Japanese capital-led ownership structure for the low-cost carrier.
The transaction, which remains subject to regulatory approvals, follows a memorandum of understanding announced in February 2026. Under the agreed structure, Development Bank of Japan (DBJ) will become a new shareholder, while JAL and Tokyo Century Corporation will retain their existing stakes. Qantas will divest its entire 33.32% shareholding, with the transaction expected to be completed by June 2027.
Following the Group’s exit, Jetstar Japan will rebrand under a new name, ending its use of the Jetstar brand as it seeks to strengthen its position as a Japanese low-cost carrier.
The Group said the divestment will enable it to redirect capital towards its Qantas and Jetstar domestic and international operations in Australia. The airline added that there will be no changes to Qantas or Jetstar services between Australia and Japan, nor to existing codeshare arrangements with JAL.
The share buyback is valued at JPY8.2 billion and is expected to generate an estimated gain of about A$115 million for the Qantas Group, largely in FY27. The gain includes one-off benefits from the release of historical foreign currency translation gains from equity reserves, together with sale proceeds on completion of the transaction. The Group will continue to recognise its share of Jetstar Japan’s profits or losses until the deal closes.
