Jakarta. The Qantas Group will shut down its Singapore-based low-cost carrier Jetstar Asia by July 31, as part of a sweeping overhaul aimed at supporting its largest-ever fleet renewal program and reinforcing its core operations in Australia and New Zealand.

The closure will free up to A$500 million ($324.85 million) in capital and allow the redeployment of 13 Airbus A320 aircraft to Qantas' domestic and regional markets. The move is expected to create more than 100 jobs in Australia and New Zealand while bolstering the Group's low-fare offerings.

Jetstar Asia, jointly owned by Qantas and Westbrook Investments, has struggled to maintain profitability amid rising supplier costs, surging airport fees, and increased regional competition. The airline is projected to report a A$35 million EBIT loss this fiscal year.

“This is a very tough day for the Jetstar Asia team,” Qantas CEO Vanessa Hudson said in a statement. “Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 percent, which has materially changed its cost base.”

Jetstar Asia’s exit affects 16 intra-Asia routes from Singapore, including services to Jakarta, Medan, Surabaya, Denpasar, and Labuan Bajo. The Indonesian government has confirmed the shutdown of Jetstar Asia operations in the country.

Agustinus Budi Hartono, Director of Air Transport at Indonesia’s Transportation Ministry, said Jetstar Asia representatives had verbally informed the ministry of the closure plan.

“The head of Jetstar Asia’s Indonesia office today conveyed the plan verbally, that operations in Jakarta-Tangerang (CGK), Medan-Kualanamu (KNO), Surabaya (SUB), Denpasar (DPS), and Labuan Bajo (LBJ) will end on July 31,” Agustinus told Kontan.

However, Jetstar Airways’ services into Asia from Australia, including destinations in Singapore, Thailand, Vietnam, Indonesia, Japan, and South Korea, will remain unaffected. Jetstar Japan operations are also unchanged.

Customers with existing bookings on canceled Jetstar Asia flights will be offered full refunds and, where possible, will be rebooked on alternative carriers. All impacted employees will receive redundancy packages and job placement support, with Qantas also exploring reemployment opportunities within the Group and through partner airlines.

Affected Jetstar Asia passengers will be contacted directly and offered full cash refunds for flights beyond the July 31 closure date. Customers with connections to Australia or traveling on key routes such as Singapore–Bali, Manila, or Osaka may be rebooked on Qantas Group flights, subject to availability. Those holding valid Jetstar Asia vouchers will be refunded starting in August, while Club Jetstar members based in Singapore will have their membership fees reimbursed. Customers are advised to check the Jetstar Asia Travel Alerts page and Manage Booking portal for real-time updates, flexible travel options, and further assistance. Passengers who booked via third-party agents should contact them directly or await further communication from Jetstar if their contact details are available.

Despite the airline’s closure, Qantas reaffirmed Singapore’s role as a vital international hub. The Group will maintain operations at Changi Airport and continue to partner with nearly 20 interline and codeshare carriers across the region.

The capital freed from Jetstar Asia’s shutdown will support Qantas’ ongoing fleet transformation, which includes nearly 200 new aircraft on order and the upcoming arrival of its first Airbus A321XLR later this month and the A350-1000ULR in 2026 under Project Sunrise.