‍DALLAS — The Qantas Group has today announced the closure of Jetstar Asia (3K) as part of a fleet renewal program aimed at strengthening its core businesses in Australia and New Zealand.

The Australian airline group says it can recycle up to A$500 million in capital thanks to the shutdown of its intra-Asia airline, which will support its historic fleet renewal program.

Thirteen Airbus A320s operated by 3K will be gradually redeployed to Australia and New Zealand, creating more local jobs and more affordable tickets.

Jetstar Asia's closure will only affect 16 intra-Asia routes; Jetstar Airways (JQ) and Jetstar Japan's (GK) services into Asia would remain unaffected. Every international flight operated by JQ to and from Australia remains available.

Why Close Jetstar Asia

In recent years, 3K, the Group's low-cost subsidiary based in Singapore, has encountered increasing difficulties. As a result, the airline will be shut down in collaboration with Westbrook Investments, the largest stakeholder.

Jetstar Asia has been impacted by increased supplier costs, high airport fees, and intensified competition in the region, despite delivering outstanding customer service and operational reliability. The low-cost airline's ability to generate returns on par with the Group's better-performing core markets has been significantly hindered by this.

Before the closure decision, the airline is anticipated to report an underlying EBIT loss of A$35 million for this fiscal year. Before its last day of business on July 31, 2025, 3K will continue to run flights for the next seven weeks on a gradually shortened schedule.

Routes Rejig

The closure of Jetstar Asia only impacts the intra-Asia routes operated by the airline from its base in Singapore. It does not impact JQ’s domestic and international operations in Australia, New Zealand, or Jetstar Japan. JQ will continue to fly from Australia into Asia, including to all its popular destinations across Singapore, Thailand, Indonesia, Vietnam, Japan, and South Korea.

Clients of 3K who already have reservations for canceled flights will receive full refunds. The Group will also transfer clients to other airlines if possible.

Redundancy benefits and employment assistance services will be offered to all impacted 3K workers. Additionally, Qantas (QF) is "actively working to find job opportunities across the Group and with other airlines in the region."

Aircraft Fleet Redeployment

Qantas Group says that to support fleet renewal and expansion, 3K will gradually redeploy its 13 mid-life A320 aircraft to key markets in Australia and New Zealand, resulting in the creation of over 100 local jobs and lower rates. 

This redeployment aims to lower JQ's cost base by replacing leased aircraft in its domestic operations. In QF’s regional operations that cater to Western Australia's vital resources sector, some of the aircraft will also aid in expediting fleet renewal.

These strategic fleet choices coincide with QF receiving the first Project Sunrise A350-1000ULR in 2026 and the first Airbus A321XLR later this month.

Comments from Qantas Group CEO

Qantas Group CEO Vanessa Hudson said, “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.”

“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,” Ms Hudson said.