Goodbye Jetstar Asia: Why Qantas is Closing its Low-Cost Airline
Singapore-based Jetstar Asia (3K) has announced the cessation of its operations beginning July 31, 2025, but assured customers it won’t leave them in a lurch.
In a statement posted on its Facebook page, the low-cost airline of Australia’s flag carrier Qantas, said its operations “[have] been increasingly challenged in recent years by escalating supplier costs, airport fees and aviation charges, as well as growing capacity and competition in the region.”
It added: “Despite our best efforts to offset these rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on Jetstar Asia’s ability to offer low fares.”
The closure will affect 3K’s flights between Singapore and Manila, which run to 18 return flights per week using a 180-seat Airbus A320. Passengers booked on flights from July 31 onwards “are eligible for a full refund to your original form of payment,” and will be contacted directly for available options.
Those whose flights depart before July 31 will receive communication from 3K regarding any changes in their schedule. However, “[if] you are not contacted with any schedule changes, your original flight will operate as planned, and there is no action needed. Please proceed to the airport as normal.” Passengers can also check their flight status from 3K’s website.
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$35 million loss forecast
In a separate news statement, Qantas clarified, however, that the decision on the Southeast Asia unit will only affect 16 intra-Asia routes, but will not impact Jetstar Airways (JQ) flights, including its international flights between Australia and Southeast Asia, or any Jetstar Japan (GK) flights.?
3K is forecast to record a loss of A$35 million (about P1.3 billion) loss, in terms of earnings before income tax, this financial year, said Qantas.
Qantas Group CEO Vanessa Hudson said “Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia. We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance and exceptional customer service. This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200 percent, which has materially changed its cost base.”
She went on to thank the 3K crew and staff, “who should be very proud of the impact they have had on aviation in the region over the past two decades.”
Meanwhile, 3K customers who have a current voucher with an available balance will be “contacted in August to arrange converting your remaining voucher balance to a monetary refund.”
Closure frees up capital for Qantas refleeting
The company added that it will also process refunds for Club Jetstar members starting August, which will be “automatically applied directly to the card you used to purchase the membership.”
The company said the decision “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…. We sincerely thank our customers for their support during the transition towards closure.”
Qantas described the closure of 3K as a “strategic restructure which supports its historic fleet renewal program and strengthens its core businesses in Australia and New Zealand.” The closure frees up A$500 million in capital which will be used to support its “historic” refleeting program, purchasing new widebody aircraft like the Airbus A350-1000 for its international routes.
The 13 Jetstar Asia A320 aircraft will be gradually redeployed to Australia and New Zealand “bringing more low fares and more local jobs.”
Qantas had recently launched its “Project Sunrise” program, which aims to connect Australia with major global destinations.
