Singapore-based budget carrier Jetstar Asia will shut down operations at the end of July, citing unsustainable cost pressures and intense regional competition. Affected passengers will be offered full refunds, while some may be rebooked on alternative flights operated by the Qantas Group.
The low-cost airline, majority-owned by Australia's Qantas Airways, has struggled to remain viable amid soaring supplier costs — some up by as much as 200% — rising airport charges, and stiff competition from other regional carriers such as AirAsia and Scoot. The airline is expected to report a huge loss for the current financial year.
More than 500 employees will be made redundant as part of the closure. Jetstar Asia said all impacted staff would receive severance benefits and job support.
Operations will wind down gradually over the next seven weeks, with passengers notified directly if their flights are affected. Those booked to travel after July 31 will be contacted by the airline. Customers who booked via travel agents or other airlines are being advised to get in touch with those providers directly.
Jetstar Asia was launched in 2004 as part of Qantas’ strategy to expand into the then-booming Asian budget travel market. The airline quickly became known for its efficiency and customer service. News of its closure has sparked an emotional response from loyal travellers, many of whom took to social media to share their memories and express sadness.
One customer wrote, “Very saddened to hear this news about a very warm, efficient, wonderful airline,” while another thanked Jetstar Asia for “opening up and popularising the budget travel market.”
Qantas, which partially owns Jetstar Asia, said the closure would not affect its other budget carriers — Jetstar Airways (based in Australia) and Jetstar Japan. The parent group will redirect 13 aircraft from Jetstar Asia to bolster routes within Australia and New Zealand.
Despite Jetstar Asia's exit, Qantas will continue to offer low-cost flights to key Asian destinations through Jetstar Airways, which serves routes between Australia and countries such as Thailand, Indonesia, and Japan.
