Qantas Shuts Down Jetstar Asia After 20 Years, Citing Rising Costs

Singapore-based budget carrier to cease operations July 31 as parent company redirects $500 million toward fleet renewal

Credit: Jetstar

Qantas Group announced Tuesday it will shut down Jetstar Asia after two decades of operations, citing rising supplier costs and intensified regional competition that made the Singapore-based budget airline unsustainable.

The closure, effective July 31, will impact 16 intra-Asia routes and unlock up to $500 million in capital that Qantas plans to redirect toward its historic fleet renewal program. Jetstar Asia expects to post a $35 million underlying earnings loss this financial year.

"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," Qantas Group CEO Vanessa Hudson said in a statement. "Despite their best efforts, we have seen some of Jetstar Asia's supplier costs increase by up to 200 percent, which has materially changed its cost base."

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