Here’s a post about an airline succumbing to the challenges of the tough intra-Asia low-cost air travel market…
Jetstar Asia ceases operations effective July 31, 2025
Jetstar Asia, based in Singapore, will cease operations effective July 31, 2025. The airline was launched as a full Qantas subsidiary in 2004, and grew over the course of the 2010s. They faced challenges launching routes to some key markets including China and Indonesia due to regulatory challenges, and faced fierce competition from neighbouring low-cost giant AirAsia and hub competitor Scoot.
The airline has performed poorly recently, and was on track for a recent negative EBITDA of A$35 million (£16.89m/HK$179m). The airline also saw their cost base increase by up to 200%, proving their operations and budgeting unsustainable. Qantas Group expects this move to “unlock” up to A$500 million (£241m/HK$2.56b) in capital, which they plan to reinvest in their core businesses. Unfortunately, 500 jobs will be impacted by Jetstar Asia’s closure – my thoughts are with them.
Jetstar Asia’s 13 A320s will be re-deployed to the airline’s Australian and New Zealand operations, as well as QantasLink’s Western Australia operation. Neither Jetstar’s core operation in Australia/NZ nor Jetstar Japan are affected by this closure.
If you’re booked on Jetstar Asia after July 31st, the airline should contact you to either rebook you on another airline, or offer a full refund (we’re also happy to help at Alvia).
This is a loss for passengers, especially Asia-Europe
Removing any competition is a loss for passengers, though Jetstar Asia offered a particularly good experience as a low-cost carrier. Their planes were comfortable, their buy-on-board selection was great, the crew were friendly, and they were also based out of Singapore Changi’s Terminal4, which is a joy to fly in and out of. I flew them once in 2024, and despite a 2.5 hour delay, I enjoyed my experience.
Jetstar’s pleasant aircraft interiors
However, the biggest loss is that Jetstar Asia was a great way to drive down costs when flying between Asia and Europe. This was because it served as a connecting carrier from southeast Asian destinations to Singapore, where Qantas’ fifth-freedom flight would then operate between Singapore and London. I did this once, and originating in Phuket, I paid around 50% of the fare that I otherwise would’ve paid if originating in Singapore.
Jetstar Asia was the most economical way to connect to Qantas’ Singapore-London flight in business or premium economy class
Conclusion
Unfortunately, Jetstar Asia is ceasing operations beginning July 31, 2025. This is because of rising operating costs rendering their operations unsustainable (e.g. they were on track for A$35 million negative EBITDA this year), and affects 500 jobs. From a consumer standpoint, Jetstar Asia offered a friendly low-cost airline experience, and also offered cheap feeder traffic into Qantas’ Singapore-London Heathrow flight, especially in premium cabins.