Jetstar Asia shutting down, over 500 employees impacted

Budget airline Jetstar Asia is ceasing operations on Jul. 31, 2025.

The airline said in a statement on Jun. 11 that the business has been "increasingly challenged" in recent years by rising costs.

This includes escalating supplier costs, airport fees, aviation charges and growing capacity and competition in the region.

The airline's schedule will be progressively reduced before permanently ceasing operations.

This, however, will not impact any Jetstar Airways flights and Jetstar Japan flights.

This closure marks the end to over two decades of air travel under the Singapore-based budget airline under Qantas.

Over 500 employees impacted

Over 500 employees will be affected by the closure, Jetstar Asia told Mothership.

"This is incredibly difficult news for our Jetstar Asia team members and customers, and the Jetstar Group is committed to providing support during this time with a range of options in place for all those impacted," the statement read.

All affected Jetstar Asia employees will be provided redundancy benefits, as well as employment support services.

The benefits include a redundancy payment of four weeks per completed year of service, a bonus payment for the 2025 financial year, a special thank you payment, and continued access to staff travel benefits for a period that's equivalent to the staff's tenure, Jetstar Asia added.

Parent group Qantas said it is also actively working to find job opportunities across the group and with other airlines in the region.

Routes impacted

Only 16 intra-Asia routes will be impacted by the closure of Jetstar Asia, Qantas said.

The airline currently operates flights between Singapore and destinations in Malaysia, Indonesia, Thailand, the Philippines, China, Sri Lanka, Japan and Australia.

The closure does not impact Jetstar Airways’ domestic and international operations in Australia and New Zealand or Jetstar Japan.

Jetstar Airways will continue to fly from Australia into Asia, including to destinations across Singapore, Thailand, Indonesia, Vietnam, Japan and South Korea.

Customers to get full refunds

Jetstar Asia customers with existing bookings for flights before Jul. 31, 2025, may be affected by changes to the airline’s usual schedule.

The airline will contact impacted customers directly.

Passengers on cancelled flights will be offered full refunds.

Qantas has stated it will attempt to rebook affected customers on alternative airlines where possible.

If customers are not contacted about any schedule changes, the original flight will operate as planned, and no action is required.

Customers with bookings from Jul. 31, 2025, onwards are eligible for a full refund to their original form of payment.

The airline will reach out directly to discuss available options.

Those affected may also visit the "Manage Booking" page on the website to request a refund now.

Additionally, those who hold a current Jetstar voucher related to Jetstar Asia travel with a remaining balance will be contacted in August to arrange to convert the balance into a monetary refund.

Flights on Jetstar Asia remain available for purchase through Jul. 31, 2025.

Rising costs

Qantas said in a statement that the decision to close the low-cost carrier came after growing challenges in recent years.

It explained that the airline has been impacted by rising supplier costs, high airport fees, and intensified competition in the region.

This has fundamentally challenged Jetstar Asia’s ability to deliver returns comparable to those of the group's stronger-performing core markets, Qantas said.

The airline is expected to post a A$35 million (S$29 million) underlying earnings before interest and taxes (EBIT) loss this financial year, prior to the closure decision.

Top photo from hikouki_jiyujizai