Singapore-based budget airline Jetstar Asia will shut down resulting in up to 500 job losses.
Singapore-based budget airline Jetstar Asia will shut down at the end of July, with all affected passengers offered full refunds. The low-cost carrier has been hit hard by soaring supplier costs, steep airport fees, and intensifying regional competition.
More than 500 employees will lose their jobs as a result of the closure. However, Qantas—Jetstar Asia’s part-owner—confirmed the shutdown will not affect operations at Jetstar Airways in Australia or Jetstar Japan.
Jetstar Asia will gradually scale down services over the next seven weeks. Travellers booked on cancelled flights will be notified directly, and those scheduled to fly after 31 July will be contacted by the airline. Some passengers may be rebooked on alternative Qantas Group flights. Customers who booked via travel agents or other airlines are advised to reach out to those providers directly.
The closure impacts 16 regional routes, including connections from Singapore to Malaysia, Indonesia, and the Philippines.
“Some of Jetstar Asia’s supplier costs have surged by up to 200%, significantly impacting its cost structure,” said Qantas Group CEO Vanessa Hudson. The airline, which has operated for more than two decades, is projected to post a A$35 million loss this financial year.
Despite the closure, Qantas will continue offering low-cost flights to Asia via Jetstar Airways, which serves destinations including Thailand, Indonesia, and Japan from Australia.
Jetstar Asia was established in 2004 as part of Qantas’ push into the Asian budget airline market, but has since struggled to compete with rivals such as AirAsia and Scoot.
