Australia’s Qantas Airways is permanently shutting down its Singapore-based budget airline, Jetstar Asia.
Photo: Jetstar Asia/Facebook
In a statement released on June 11, the airline announced that it will cease operations on July 31 after two decades of service, resulting in 500 job losses. Jetstar Asia revealed that in recent years, it has been struggling with “escalating supplier costs, airport fees, and aviation charges as well as growing capacity and competition in the region.”
“Despite our best efforts to offset these rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on Jetstar Asia’s ability to offer low fares,” the airline emphasized.
Jetstar Asia will continue to operate with a reduced schedule until July 31. Customers with bookings from July 31 onwards are eligible for a full refund.
The airline also clarified that this closure does not affect any Jetstar Airways (JQ) flights, including JQ international flights between Australia and Southeast Asia, or any Jetstar Japan (GK) flights.
The closure of Jetstar Asia will allow Qantas to reallocate up to A$500 million (approximately US$326 million) into its core business operations, particularly its fleet renewal program. It can also repurpose 13 planes for routes across Australia and New Zealand.
“This is incredibly difficult news for our Jetstar Asia team members and customers, and the Jetstar Group is committed to providing support during this time with a range of options in place for all those impacted,” Jetstar noted.
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