Jetstar Asia to Cease Operations After Two Decades, Over 500 Jobs Lost

Singapore-based low-cost carrier, part of Qantas Group, cites soaring costs and fierce competition for closure

 

Jetstar Asia, the Singapore-based low-cost airline, has announced its intention to cease all operations, leading to the redundancy of over 500 employees and bringing an end to the Qantas Group's two-decade presence in the low-cost aviation sector in Singapore.

 

The airline confirmed on Wednesday (June 11th) that all Jetstar Asia flights will be grounded permanently from 31st July 2025.

 

This decision will result in more than 500 staff being laid off, as the budget carrier grapples with escalating supplier costs, prohibitive airport fees, and intensifying regional competition.

 

This closure marks the final chapter for the Qantas Group's low-cost airline venture in Singapore.

 

Jetstar Asia (3K), a Singaporean offshoot of the Jetstar brand, has operated from its hub at Singapore Changi Airport, serving numerous destinations across Asia, including several locations in Thailand.

 

A spokesperson for the airline stated that the decision to discontinue operations permanently from 31st July 2025 onwards was reached with "considerable difficulty," following a comprehensive review of the airline's performance amidst the challenges it has faced in recent years, particularly the significant increase in operating costs across the region. 
  

Jetstar Asia will continue to fly, gradually reducing its frequencies, until the 31st July 2025 deadline. Affected passengers will be contacted directly.

 

It was also clarified that this decision will have no impact on flights operated by Jetstar Airways (JQ) or Jetstar Japan (GK).

 

Jetstar is the budget airline brand within Australia's Qantas Group, with Jetstar-branded airlines established in various countries, including Jetstar Airways (JQ) in Australia, Jetstar Japan (GK) in Japan, and the now-defunct Jetstar Asia (3K) in Singapore.

 

Jetstar Asia was founded on 19th November 2004 and commenced operations on 13th December 2004, marking a 20-year run. Its current fleet comprises 13 Airbus A320 aircraft, serving 18 destinations.

 

For passengers in the Thai market, Jetstar Asia currently offers flights between Singapore and Bangkok (Suvarnabhumi), Phuket, and Krabi. Historically, it also served Hat Yai and U-Tapao.
  

Qantas, a part-owner of the budget carrier, indicated that the shutdown would free up AUD 500 million for the airline to invest in fleet renewal.

 

The 13 aircraft from Jetstar Asia's fleet will be redeployed on routes across Australia and New Zealand. The closure of Jetstar Asia will not affect the operations of Australia-based Jetstar Airways or Jetstar Japan.

 

Vanessa Hudson, CEO of Qantas Group, commented in a statement: "We've observed some of Jetstar Asia's supplier costs surge by as much as 200%, which has profoundly altered the company's cost base."

 

The low-cost airline, which has provided flights for over two decades, is projected to record an AUD 35 million loss in the current financial year. Its network covered various routes across Asia, including popular destinations in Malaysia, the Philippines, and Japan.

 

Jetstar Asia will continue to operate flights for another seven weeks, albeit with a progressively reduced schedule, before ceasing services on 31st July

 

Passengers whose Jetstar Asia flights have been cancelled will receive a full refund, while some may be offered re-accommodation on alternative routes operated by the Qantas Group. All staff impacted by the announcement will receive redundancy entitlements.

 

Stephanie Tully, CEO of Jetstar Group, remarked: "We have an exceptional team who have consistently delivered world-class customer service and best-in-class operational performance. Our primary focus now is on supporting them through this process and assisting them in securing new employment within the industry."

 

Qantas, Australia's flag carrier, will maintain its budget flight offerings to Asia via Jetstar Airways, which operates from Australia to destinations such as Thailand, Indonesia, and Japan.

 

Qantas launched Jetstar Asia in 2004 to capitalise on Asia's burgeoning budget air travel market but has since faced intensifying competition from other low-cost carriers, including AirAsia and Scoot.

(2025/06/11-00:00)