Qantas to Close Jetstar Asia Amid Rising Costs

Qantas will close its Singapore-based budget airline, Jetstar Asia, at the end of July 2025 due to rising operational costs, especially increased airport fees at Changi, and heightened competition in Southeast Asia's low-cost carrier market. The closure will result in the loss of around 500 jobs in Singapore, with affected employees offered redundancy benefits and potential redeployment within Qantas or other airlines. Jetstar Asia, which has only been profitable for six of its 20 years, is forecasting an A$35 million loss for this year. Thirteen Airbus A320 aircraft from Jetstar Asia will be redeployed mainly to Australia and New Zealand to strengthen Qantas’ core domestic operations. The decision coincides with Virgin Australia preparing to relist on the stock market, adding to competitive pressures in the Australian domestic market. Customers with existing Jetstar Asia bookings will be offered refunds or rebooking options where possible.