Wed, 11 Jun 2025

Wed, 11 Jun 2025 Budget airline Jetstar Asia to close in weeks, customers offered refunds

Jetstar Asia has struggled with rising supplier costs, high airport fees and increased competition.
Jetstar Asia will cease operations on July 31st, with passengers affected by the closure receiving full refunds. The Singapore-based budget airline has struggled due to rising supplier costs and increased competition in the region. Approximately 500 employees will be laid off as a result of the shutdown. Affected customers can expect reduced services over the next seven weeks, during which time they may be contacted about alternative flights operated by Qantas Group airlines. Some routes across Asia will no longer be available, including those connecting Singapore to Malaysia, Indonesia, and the Philippines. The closure is expected to provide Qantas with A$500m for fleet renewal and redeployment of 13 planes. Qantas' Chief Executive Vanessa Hudson stated that supplier costs had increased by up to 200%, significantly impacting Jetstar Asia's financial situation. This year alone, the airline is projected to incur a loss of A$35m. Employees affected by the closure will receive redundancy benefits, according to the airline's Group Chief Executive Stephanie Tully. The shutdown will not impact Qantas' low-cost arm in Australia or Japan.
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