Singapore-based budget airline Jetstar Asia will discontinue its operations on July 31st, marking the end of an era for the low-cost carrier. The closure is part of a “strategic restructure” initiated by its parent company, Qantas, the Australian flag carrier. The decision will result in the layoff of more than 500 employees in Singapore.
Jetstar Asia has assured affected employees that they will receive comprehensive support, including retrenchment benefits and assistance in finding new employment opportunities within the Qantas Group or elsewhere. The airline will operate a progressively reduced flight schedule over the next seven weeks before its final day of service on July 31st.
Qantas has stated that the closure of Jetstar Asia will impact 16 intra-Asia routes. However, services into Asia operated by Jetstar Airways (JQ) and Jetstar Japan (GK) will remain unaffected. Similarly, Jetstar Airways’ international services to and from Australia will continue as normal.
Customers with existing bookings affected by the closure will be contacted directly and offered a full cash refund or an alternative flight, where possible. Jetstar Asia has established a dedicated webpage to provide customers with relevant information, and its Travel Alert page will be regularly updated with the latest advice. This situation highlights the importance of understanding airline policies regarding cancellations and refunds.
Rising Costs and Market Competition
Jetstar Asia attributed its decision to cease operations to a combination of factors, including escalating supplier costs, airport fees, and aviation charges, as well as increasing capacity and competition in the region. The airline anticipates posting a loss of A$35 million (S$29.3 million) before interest and taxes for the current financial year, even before the decision to shut down.
Qantas chief Vanessa Hudson noted that some supplier costs have surged by as much as 200 percent. Jetstar Asia anticipates that these rising costs will continue to put “unsustainable pressure” on its ability to offer low fares, which it considers fundamental to its business model. The airline’s chief executive, John Simeone, expressed regret that market conditions had ultimately undermined its ability to maintain its commitment to everyday low fares.
The Singapore Manual & Mercantile Workers’ Union (SMMWU) has been working closely with Jetstar Asia’s management to ensure that affected workers receive fair compensation. The union will provide job placement assistance, career advisory services across various industries, and financial aid, where necessary, to support employees during this transition. This situation underscores the importance of labor unions in protecting workers’ rights.
Impact on Changi Airport and Regional Connectivity
Jetstar Asia operates approximately 180 weekly services at Changi Airport and carried about 2.3 million passengers in 2024, accounting for roughly 3 percent of Changi’s total traffic. Of the 16 routes affected by Jetstar Asia’s closure, 12 are served by 18 other airlines offering more than 1,000 weekly services, according to CAG.
CAG will monitor the affected routes and actively engage other airlines to fill any capacity gaps. The airport operator will also work to restore connectivity to the four destinations served exclusively by Jetstar Asia from Changi: Broome in Australia, Labuan Bajo in Indonesia, Okinawa in Japan, and Wuxi in China.
The Qantas Group will provide support for Jetstar Asia to continue meeting its obligations as operations wind down. Jetstar Group chief executive Stephanie Tully described the closure as an “incredibly difficult and sad day” for the airline’s people, customers, and the entire Jetstar Group.
Following the airline’s closure, its 13 aircraft will be progressively redeployed across the Qantas Group to support fleet renewal and growth in the Australia and New Zealand businesses, aligning with underlying demand. This event also highlights the dynamic nature of the aviation industry and the challenges faced by low-cost carriers.