Jetstar Asia, the Group’s Singapore-based low-cost subsidiary, has faced growing challenges in recent years and the decision has been made, together with majority shareholder Westbrook Investments, to close the airline.

Jetstar Asia has earned a strong reputation for exceptional customer service and operational reliability, but has struggled under the weight of:

• Steep increases in supplier costs (some up to 200%),

• Rising airport charges, and

• Intensified low-cost competition across the region.

These factors have made it increasingly difficult for the airline to deliver returns comparable to Qantas Group’s core markets. Jetstar Asia is expected to report a $35 million underlying EBIT loss in the current financial year.

Jetstar Asia will operate on a progressively reduced schedule over the next seven weeks, with its final day of service on 31 July 2025.

The decision only affects Jetstar Asia’s intra-Asia operations, based in Singapore. It does not impact Jetstar Airways’ domestic and international operations in Australia and New Zealand, nor Jetstar Japan’s services. Jetstar Airways will continue to operate into Asia from Australia, including key destinations in Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea.

Jetstar Asia’s Network

Jetstar Asia’s current network includes 16 ports across 8 markets, with Singapore serving as its home base and the Qantas Group’s largest hub outside Australia. Its destinations include:

• Bangkok

• Manila

• Broome (seasonal route)^

• Okinawa

• Clark

• Osaka (Kansai)

• Denpasar

• Penang

• Haikou

• Phnom Penh

• Jakarta

• Phuket

• Krabi

• Surabaya

• Kuala Lumpur

• Wuxi

Qantas Group CEO Vanessa Hudson commented:

“Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.

“We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance and exceptional customer service. This is a very tough day for them.

“Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 per cent, which has materially changed its cost base.

“I want to sincerely thank and acknowledge our incredible Jetstar Asia team who should be very proud of the impact they have had on aviation in the region over the past two decades.”

Customers holding bookings on cancelled Jetstar Asia flights will be offered full refunds, and the Group will work to reaccommodate passengers on other airlines where possible.

All impacted employees will receive redundancy benefits and employment support services, and Qantas is actively seeking opportunities for affected staff within the Group and with partner airlines.

Singapore will remain a critical international hub for Qantas, currently its third-largest outside Australia. Through Singapore, Qantas offers access to almost 20 codeshare and interline airline partners servicing broader Asia.

Jetstar Asia will meet its financial obligations to customers, suppliers, and employees, supported by Qantas.

Capital Recycling to Fuel Fleet Renewal and Growth

The closure of Jetstar Asia will allow the Qantas Group to redirect up to $500 million in fleet capital to its highest-performing operations, in line with its disciplined capital allocation strategy.

Jetstar Asia’s 13 mid-life Airbus A320s will be redeployed into domestic and regional markets in Australia and New Zealand, where they will:

• Support fleet renewal and growth,

• Help reduce operating costs by replacing leased aircraft,

• Enable the Group to expand low-fare offerings, and

• Create more than 100 jobs.

Some aircraft will also be allocated to QantasLink’s regional network, particularly in Western Australia, supporting critical resource-sector routes.

This comes as Qantas receives its first Airbus A321XLR this month and prepares for the arrival of the first Project Sunrise A350-1000ULR in 2026.

Ms Hudson added:

“We are currently undertaking the most ambitious fleet renewal program in our history, with almost 200 firm aircraft orders and hundreds of millions of dollars being invested into our existing fleet.

“We’re making disciplined decisions which recycle capital across our business and prioritise it to stronger performing segments as well as strategic growth initiatives like Project Sunrise.”

Financial Impact of Jetstar Asia Closure

The closure will result in:

• One-off redundancy and restructuring costs,

• The non-cash expensing of historical foreign currency translation losses,

• Asset write-downs tied to changes in the Group’s fleet.

These are expected to total $175 million, with around one-third to be recognised in FY25 and the remainder in FY26, recorded outside of underlying earnings.

The direct pre-tax cash impact is estimated at $160 million, primarily in FY26, including the unwind of Jetstar Asia’s working capital. This will be largely offset by:

• Working capital benefits from redeployed aircraft supporting Jetstar Airways growth, and

• Tax adjustments that reduce Qantas Group’s tax payments from FY26 onward.

Key Group Financial Update for 2H25

• Jetstar Asia’s performance worsened in the second half, with an expected underlying EBIT loss of $25 million.

• Group Domestic capacity growth was lower than forecast, due primarily to Cyclone Alfred, which disrupted services across Queensland and resulted in a $30 million earnings impact.

• Group International capacity is forecast to grow 9%, down from 12% guidance, due to industrial action affecting Qantas’ Finnair wet lease.

• Despite these impacts, the Group continues to report strong demand across both Domestic and International markets, with unit revenue and capital expenditure remaining on track with guidance.