Jetstar Asia to Cease Operations in July, Over 500 Jobs Affected
Singapore-based budget airline Jetstar Asia is set to shut down operations by the end of July, bringing an end to more than two decades of service across the region. The announcement came as the carrier cited unsustainable costs, including surging supplier expenses and mounting airport fees, alongside intensifying regional competition.
The airline, a subsidiary of the Qantas Group, will begin scaling down its services over the next seven weeks. Affected customers with bookings beyond the July 31 closure date will be offered full refunds, while some may be rebooked on alternative flights within the Qantas network. Travellers who booked through travel agents or third-party airlines have been advised to contact those providers directly.
The closure will impact 16 routes, including key links between Singapore and destinations in Malaysia, Indonesia, and the Philippines.
According to Qantas, the shutdown of Jetstar Asia will not affect the operations of Jetstar Airways in Australia or Jetstar Japan. The group also confirmed that 13 aircraft previously operated by Jetstar Asia will be reassigned to routes in Australia and New Zealand.
The decision is expected to free up around A$500 million, which Qantas plans to invest in fleet upgrades. However, the move comes at a significant human cost – more than 500 Jetstar Asia employees will be laid off. The company says it will provide redundancy packages and assist affected staff in finding new opportunities within the industry.
Jetstar Asia is projected to report a loss of A$35 million this financial year. Qantas Group CEO Vanessa Hudson highlighted the scale of the airline’s financial challenges, noting that “some supplier costs have increased by up to 200%, materially impacting the airline’s cost structure.”
Jetstar Group CEO Stephanie Tully praised the outgoing team, stating, “Our people have consistently delivered outstanding service and performance. Our priority now is to support them during this transition.”
Jetstar Asia was established in 2004 as part of Qantas’ strategic expansion into Asia’s low-cost aviation market. However, it has struggled in recent years to maintain competitiveness against regional giants such as AirAsia and Scoot.
The announcement has sparked emotional reactions from long-time customers, many of whom took to social media to express gratitude and sadness. “Very saddened to hear this news about a very warm, efficient, wonderful airline,” one user wrote. Another added, “Thank you for opening up and popularising the budget travel market.”
Jetstar Airways will continue offering budget flights from Australia to destinations including Thailand, Japan, and Indonesia, ensuring that Qantas remains active in Asia’s competitive low-cost travel sector.
