Jetstar Asia is Closing Down

Qantas’ Singapore-based low-cost carrier Jetstar Asia (3K) will shut down at the end of July 2025 after almost 21 years, citing rising costs.

Jetstar Asia will continue to operate flights until 31 July 2025, but with a progressively reduced schedule. From its hub at Singapore Changi Airport, the airline currently serves 17 destinations including Kuala Lumpur, Phuket, Manila, Surabaya, Okinawa, Colombo and Broome. (The seasonal route from Singapore to Broome in Western Australia launched last year, but has reportedly performed very poorly.)

The airline has a fleet of 13 Airbus A320 jets which will be redeployed to Qantas Group airlines in Australia and New Zealand. Some of these mid-life planes will replace Airbus A320s that Jetstar is currently leasing for is Australian and New Zealand operations, while others will go to QantasLink for use on intra-WA routes.

Founded in 2004, Jetstar Asia has two major shareholders. Qantas Group owns 49% of the budget carrier, while Singapore-based Westbrook Investments owns the other 51%.

Jetstar Asia closure blamed on rising costs

This announcement has come as a big surprise to the frequent flyer community. But some commentators believe it was inevitable.

The Qantas Group has blamed rising supplier costs, high airport fees and “intensified competition in the region” for its decision to close down Jetstar Asia, which it says is expected to lose $35 million this financial year.

“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 per cent, which has materially changed its cost base,” Qantas Group CEO Vanessa Hudson said.

Being based in Singapore, Jetstar Asia faces strong competition from Scoot, a budget airline owned by Singapore Airlines. It also has to compete in the broader region with AirAsia and multiple Indonesian carriers with low cost bases.

In 2023, Jetstar was forced to move its operations at its home airport to the new Terminal 4 after a public dispute with Changi Airport Group. This made it more difficult for passengers to connect in Singapore between Qantas and Jetstar flights, as well as flights on other codeshare partners like Finnair.

Singapore Airlines and Scoot did not have to move to Terminal 4, which is the least convenient for passengers to access as it’s not directly connected to the MRT (train) or to the other terminals.

Other Jetstar airlines unaffected

This decision does not affect Jetstar Airways (JQ) in Australia and New Zealand, nor Jetstar Japan (GK). Jetstar will continue to fly from Melbourne and Perth to Singapore.

However, one wonders what impact this could have on Qantas’ services into Singapore. Currently, Qantas has a mini-hub in Singapore as it connects passengers from multiple Australian cities through Singapore onto its London flights, as well as onto codeshare services into secondary Southeast Asian cities operated by Jetstar Asia. That Jetstar Asia feed will soon no longer exist.

Unfortunately, the closure of Jetstar Asia will also reduce opportunities for Qantas Frequent Flyer members to redeem points for travel within Southeast Asia. Fortunately, Classic Reward seats are still available on partner airlines including Malaysia Airlines and Bangkok Airways.

Jetstar will continue to operate a fifth-freedom route between Singapore and Bali – a route that Qantas partner KLM also flies.

The Qantas Group also previously part-owned Jetstar Pacific, a joint venture with Vietnam Airlines based in Vietnam. That brand was retired in 2020.

Customers rebooked or refunded

Jetstar Asia is offering refunds to customers booked to fly on or after 1 August 2025. Alternatively, customers can choose to bring forward their travel to a date prior to 31 July 2025.

Where possible, Qantas Group says that it will also look to reaccommodate Jetstar Asia customers onto other airlines.

If you have a Qantas ticket that includes a flight/s operated by Jetstar Asia, Qantas’ commercial policy outlines your rebooking or refund options.

Matt Graham

The editor of Australian Frequent Flyer, Matt's passion for travel has taken him to more than 100 countries… with the help of frequent flyer points, of course!
Matt's favourite destinations (so far) are Germany, Brazil, Kazakhstan and Uzbekistan. His interests include aviation, economics & foreign languages, and he has a soft spot for good food and red wine.

You can connect with Matt by posting on the Australian Frequent Flyer community forum and tagging @AFF Editor.