Qantas to Absorb Jetstar Asia operations, Expanding Australia-New Zealand Focus
By Amelia Riley | SYDNEY – 2025/06/11 12:17:53
Qantas is set to integrate its intra-asia carrier, Jetstar Asia, into its primary operations, focusing on strengthening its presence in teh australian and New Zealand markets. The move will see changes to flight routes and staffing.
Qantas is consolidating its operations by closing Jetstar Asia, its intra-Asia carrier, within the coming months. This strategic shift will result in more Qantas planes operating in Australian and New zealand airspace.
The final Jetstar Asia flight is scheduled for July 31, leading to approximately 500 job losses in Singapore as the Qantas Group redirects its focus towards the Australian and New Zealand markets.
the airline has clarified that flights connecting Australian airports to Asian destinations and Jetstar Japan services will remain unaffected.
The integration will see 13 Jetstar Asia Airbus A320 aircraft redeployed to replace leased and older planes in Australia and New Zealand. Qantas anticipates this will generate around 100 new local jobs.
In a statement to the ASX, the Qantas group cited increased competition, rising supplier costs, and high airport fees as the primary drivers behind the closure of Jetstar Asia.
Jetstar Asia was projected to incur a $35 million loss by the end of the financial year.
Qantas group chief executive Vanessa Hudson acknowledged the impact on staff, stating it was a “very tough day” while also highlighting the airlineS role in making low-cost travel accessible to millions over the past two decades.
“We have seen some of Jetstar Asia’s supplier costs increase by up to 200%, which has materially changed its costs base,” ms Hudson said.
The airline anticipates that this restructuring will “unlock” up to $500 million in capital,which will be reinvested into its core business operations.
Passengers affected by flight cancellations will be offered refunds or rebooked onto choice flights.
Qantas has assured that Jetstar Asia employees will receive redundancy benefits and will be considered for re-employment within the Qantas Group where possible.
Impact on Passengers and the Aviation Market
“We have seen some of Jetstar Asia’s supplier costs increase by up to 200%, which has materially changed its costs base,”
The closure of Jetstar Asia raises questions about the future of low-cost travel options in Asia and the competitive landscape for airlines operating in the region. Passengers with existing bookings should check with Qantas for updates and alternative travel arrangements.
What is driving Airline Restructuring?
Frequently Asked Questions
Why is Jetstar Asia closing?
Jetstar Asia is closing due to increased competition, rising supplier costs, and high airport fees, which have made the business unsustainable.
What happens to passengers with existing Jetstar Asia bookings?
Passengers with bookings for cancelled flights will be entitled to refunds or will be moved onto other flights.
What will happen to Jetstar Asia employees?
Jetstar Asia employees are entitled to redundancy benefits and will be re-employed within Qantas Group where possible.
