Jetstar Asia to shut down in July after 20 years in the skies

SINGAPORE – After two decades of flying budget-conscious travelers across the region, Jetstar Asia will shut down permanently on July 31, 2025, according to an announcement from parent company Qantas Group this week.

Jetstar Asia Airbus A320-232, registration 9V-JSI, operating as flight 3K 698 from Hong Kong to Singapore, seen taxiing at Singapore Changi Airport. Delivered in October 2010 (MSN 4443), this aircraft represents one of the 13 in Jetstar Asia's fleet scheduled for redistribution following the airline’s announced shutdown on July 31, 2025. The closure marks the end of a key low-cost link across Asia, impacting regional connectivity between Singapore and destinations such as Thailand, Malaysia, the Philippines, and Japan. As one of Southeast Asia’s longest-serving budget carriers, Jetstar Asia’s exit underscores growing challenges in the region’s highly competitive aviation market. Photo: Charles, Flickr CC BY 2.0

The move will mark the end of a once-vibrant low-cost airline that connected Singapore with 16 cities across Asia. «Jetstar Asia helped bring in first-time tourists to secondary cities in Vietnam, the Philippines, and Thailand. Those routes may now disappear completely.» Nattapong R. Airport Commercial Manager, Krabi International

Citing rising operational costs, intense competition in the Southeast Asian market, and a strategic shift within Qantas, the decision will affect over 500 employees in Singapore and disrupt travel plans for thousands of passengers booked for late 2025 and beyond.

«The loss of Jetstar Asia is a blow to Singapore’s position as a regional low-cost aviation hub. It’s a reminder of how razor-thin margins are in this business.» Amelia Chong Vice President, Singapore Tourism & Travel Council

Key player in Asia

Jetstar Asia, based at Changi Airport, has long been a key player in the region’s budget air travel scene. Its routes covered major destinations in Malaysia, Thailand, the Philippines, Japan, and Indonesia, offering affordable options for short-haul international flights. It also played a significant role in connecting Singapore with less-served secondary cities in neighboring countries.

«This was not a decision we made lightly,» a Qantas spokesperson said. «We recognize the impact this will have on our Singapore-based team and loyal customers, but the regional low-cost market has changed dramatically, and we must adapt.»

Regional impact of Jetstar Asia's closure

Mark Tan, an aviation market analyst at Aviation Solutions GSA Pte Ltd in Singapore, provided the most detailed perspective on Jetstar Asia’s shutdown.

«Jetstar Asia was more than just a budget airline — it was a regional connector. Its closure leaves a noticeable gap in Southeast Asia’s low-cost travel network,» he said.

Tan emphasized that the airline’s role went beyond point-to-point connectivity. It provided vital access between Singapore and second-tier cities in neighboring countries, contributing to tourism, business links, and regional development.

«This is not just about one airline shutting down. It’s about losing a reliable, structured alternative to dominant players like AirAsia and Scoot. The diversity in the market kept fares competitive and allowed more communities to stay connected.»

He also noted that the timing reflects broader industry stress.

«Profit margins are being squeezed across the board—fuel prices, airport fees, labor costs. Smaller players like Jetstar Asia are the first to go when global groups start tightening focus on core profitability,» he added.

Tan expects that while Jetstar Airways in Australia will absorb some of the fleet, many of the routes Jetstar Asia operated will either be absorbed slowly by competitors or vanish entirely.

Full refunds or rebooking

Travelers affected by the shutdown will be offered full refunds or rebooking on alternate carriers, Qantas confirmed. The airline has also pledged to work with local partners and aviation authorities to minimize passenger disruption during the phase-out process.

Aviation analysts say Jetstar Asia’s closure reflects a broader trend in the ultra-competitive Southeast Asian market, where major players like AirAsia, Scoot, and Lion Air dominate with scale and aggressive pricing. The return of post-pandemic travel has reignited demand but also intensified cost pressures, especially for smaller operators.

«Jetstar Asia made quick weekend getaways to Bangkok or Bali affordable. Now I’ll have to pay double or fly indirect.» Joanne Lim Frequent flyer from Singapore

New focus

Jetstar Asia’s shutdown follows a global review by Qantas of its overseas low-cost operations. The group is expected to concentrate more heavily on its core Australian domestic and international routes, and deepen its partnership with Qatar Airways, which recently launched new routes connecting Sydney, Brisbane, Perth, and Melbourne to Doha. For Singapore, the end of Jetstar Asia marks more than a business closure — it’s the disappearance of a familiar name in budget travel, one that carried millions of passengers around the region since its launch in 2004.

Facts about JetStar Asia

. General Overview

• Name: Jetstar Asia Airways

• Founded: December 13, 2004

• Ownership: 51% Westbrook Investments, 49% Qantas Group

• Headquarters & Hub: Singapore Changi Airport

• CEO: John Simeone

• Chairman: Dennis Choo

Fleet

• Total Aircraft: 13

• Aircraft Type: Airbus A320-200

• Configuration: All economy, 180 seats

• Average Aircraft Age: Approx. 13.3 years

• Fleet after shutdown: 9 aircraft to Jetstar Airways (Australia), 4 to Network Aviation (Western Australia FIFO)

Destinations (16 total before shutdown)

• Malaysia: Kuala Lumpur

• Thailand: Phuket, Krabi

• Philippines: Manila

• Vietnam: Hanoi, Da Nang

• Sri Lanka: Colombo

• Taiwan: Taipei

• Japan: Osaka, Tokyo

• Indonesia: Jakarta, Bali

• Australia: Darwin

• Hong Kong (service reduced prior to closure)

Employees

• Total Employees: Over 500 (Singapore-based)

• All jobs made redundant with closure on July 31, 2025

• Severance and support packages offered by Qantas Group

Financial Status

• Profitability: Only 6 profitable years in its 20-year history

• FY 2024–25 Forecast: AUD 35 million underlying loss

• Estimated Closure Costs: AUD 175 million (restructuring and currency impacts)

• Capital Reallocation: AUD 500 million freed up for Qantas fleet investments
  

Closure Details

• Ceasing Operations: July 31, 2025

• Reason: Rising operational costs (fuel, airport charges, ground handling), intense regional competition

• Impact: Disruption to 16 routes; major gap in Singapore’s low-cost air market

• Customer Support: Full refunds or rebookings on alternate airlines being offered

Qantas & Jetstar Group Fleet Expansion Plans

• Total New Aircraft Ordered: Nearly 200 (A320neo, A321LR, A321XLR, A220, Boeing 787, Airbus A350-1000ULR)

• Project Sunrise: First A350-1000 ULR deliveries expected in 2026 for ultra-long-haul flights

• Jetstar Airways (Australia/NZ): Operating fleet of 88 aircraft, with more A321neo and XLR deliveries pending

Jetstar Group Snapshot

• Jetstar Airways (Australia and New Zealand): Largest Jetstar entity

• Jetstar Japan: Active with 22 A320-family aircraft

• Jetstar Hong Kong: License denied, never launched

Leadership

• Jetstar Asia CEO: John Simeone

• Jetstar Group CEO: Stephanie Tully (responsible for group-wide strategy and fleet expansion)