Singapore-based budget airline Jetstar Asia has announced it will cease operations by the end of July, marking the end of more than two decades of service in the region. The decision, attributed to mounting financial pressures and fierce competition, will impact over 500 employees and thousands of passengers across Asia.
The airline, which is majority-owned by Singapore’s Westbrook Investments and part-owned by Australia’s Qantas Group, cited soaring supplier costs—some rising by as much as 200%—as a key factor in its closure. Other contributing issues included elevated airport fees and increased competition from regional low-cost carriers such as AirAsia and Scoot.
In a statement, Qantas Group Chief Executive Vanessa Hudson said, “We have seen some of Jetstar Asia’s supplier costs increase significantly, which has materially changed its cost base. This has made the airline’s operations unsustainable in their current form.”
Jetstar Asia will progressively wind down its services over the next seven weeks, with all flights ceasing by July 31. The airline has committed to offering full refunds to affected customers. Travellers with bookings beyond the closure date will be contacted directly, and some may be rebooked on alternative Qantas Group flights. Customers who made bookings through travel agents or third-party providers are advised to liaise with them for further assistance.
The closure will affect 16 regional routes, including popular services between Singapore and destinations in Malaysia, Indonesia, and the Philippines.
Qantas, which owns 49% of Jetstar Asia, stated that the shutdown will not affect its other low-cost operations, including Jetstar Airways in Australia and Jetstar Japan. The company also plans to redeploy 13 aircraft from Jetstar Asia to strengthen its domestic and trans-Tasman services between Australia and New Zealand. The move is expected to free up A$500 million (US$326 million) to help modernise the Qantas fleet.
Jetstar Asia is expected to post a loss of A$35 million this financial year. Since its launch in 2004, the airline had aimed to tap into Asia’s booming low-cost travel market, but growing operational challenges ultimately undermined its long-term viability.
Jetstar Group CEO Stephanie Tully praised the airline’s workforce, saying, “We have an exceptional team who have consistently delivered world-class customer service and operational performance. Our focus is now on supporting them through this transition and helping them find new roles in the industry.”
The announcement has sparked an outpouring of public support on social media, with many customers expressing sadness and gratitude. One former passenger commented, “Very saddened to hear this news about a warm, efficient, wonderful airline,” while another thanked Jetstar Asia for “popularising the budget travel market.”
Despite the setback, Qantas remains committed to serving Asian destinations through its other operations, reaffirming its presence in the region even as one chapter closes.
