Jetstar Asia's closure partly due to Changi Airport's costs increases: Jetstar Group CEO

Jetstar Group executives have attributed the closure of its Singapore-based budget airline Jetstar Asia partly to the high costs of operating from Changi Airport.

In a statement on Jun. 11, the airline announced that it would cease operations on Jul. 30, 2025, due to rising costs that put "unsustainable pressure on Jetstar Asia’s ability to offer low fares".

Speaking to reporters on Jun. 11, Jetstar Group CEO Stephanie Tully said the airline has seen "really high cost increases" at its Singapore base, CNA reported.

This included double-digit rises in fuel, airport fees, ground handling, and security charges.

From Apr. 1, passenger and airline fees at Changi Airport were hiked, and would be progressively increased until 2030, to fund a S$3 billion upgrade of the airport terminals.

Tully said cost increases were seen across Jetstar Asia's whole ecosystem, as quoted by Bloomberg.

"The airport fees are a part of that. That has had an impact on the business," she added.

Jetstar Asia reported profits in only six of its 21 years of operations since it launched in 2004, according to Bloomberg.

In a statement, its parent company Qantas Group said the airline is expected to post an underlying loss of A$35 million (S$29 million) before interest and tax in the financial year ending Jun. 30, 2025.

Jetstar Asia's departure would free up as much as A$500 million (S$416 million) for Qantas to invest into the group’s core businesses and improve long-term returns.

Changi Airport's response

According to The Straits Times, Changi Airport Group (CAG) said in response to Bloomberg's report that the fee hikes at the airport are applied equally to all carriers and constitute a small component of airlines' total operating costs.

CAG also added that it has been working proactively with airlines, including Jetstar Asia, to enhance productivity and cost-efficiency.

These efforts include working with Jetstar Asia over the years to stimulate demand through marketing, and to identify new route opportunities.

Top image from Jetstar Asia's Facebook