Jetstar Asia, the Singapore-based budget airline under Australia's Qantas Group, announced today (June 11) that it will permanently cease operations by the end of July, resulting in over 500 employees being laid off.
In its official statement, Jetstar Asia confirmed that it will gradually reduce flights leading up to its final day of operations on July 31. Passengers impacted by the suspension will receive full refunds. Meanwhile, Jetstar Airways and Jetstar Japan, two other low-cost carriers under Qantas, will remain unaffected.
The company cited rising supplier costs, increased airport fees, and intensifying regional competition as the main factors behind its decision. These challenges have made offering low-cost fares unsustainable. Qantas CEO Vanessa Hudson described the decision as difficult, noting that some supplier costs for Jetstar Asia had doubled, significantly altering the airline's cost structure.
Founded in 2004, Jetstar Asia primarily operated flights connecting Singapore to neighboring regions, with a network of 16 routes. Jetstar CEO Stephanie Tully stated that the airline has only achieved profitability in six of its 20 years of operation. The company is expected to record a loss of AUD 35 million for the fiscal year ending in July.
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