News
Jetstar Asia ceases operations due to “unsustainable pressure”
June 12th 2025
Jetstar Asia, the Singapore-based Qantas Airways subsidiary, announced on June 11, 2025, that it will progressively reduce its schedule before permanently ceasing operations on July 31, 2025. Read More » “Jetstar Asia’s (3K) business has 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. 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 LCC said in the statement. On April 1, Singapore Changi Airport imposed higher airport fees to finance airport expansion. Jetstar Group Chief Executive Officer Stephanie Tully told reporters at a briefing Wednesday that the increases have been seen across “the whole ecosystem we operate out of. The airport fees are a part of that. That has had an impact on the business.” The International Air Transport Association (IATA) said in the statement sent to Orient Aviation Daily Digest that Jetstar Asia highlights the challenging nature of the airline industry in the region. “Aviation stakeholders across the value chain have a critical role in helping airlines manage the escalating operating costs across the region. This year, we are expecting airlines globally to collectively make a net profit margin of 3.7%, with a profit per passenger of US$7.2. For airlines in the Asia-Pacific region, this is reduced to a 1.9% net profit margin with a US$2.6 profit per passenger, despite contributing $890 billion to the region’s GDP. It is a very thin buffer, and with margins this low, any cost increase can impact an airline’s viability,” Sheldon Hee, IATA’s Regional Vice President for Asia Pacific said, adding that he is “saddened to hear that Jetstar Asia is ceasing operations just months after celebrating its 20th anniversary.” Jetstar Asia launched its operations in 2004 and became the third-largest carrier operating out of Changi. The shutdown of operations will result in the loss of around 500 local jobs. 13 Jetstar Asia Airbus A320 aircraft will be redeployed to Australia and New Zealand, creating 100 jobs locally. The decision to cease operations by Jetstar Asia does not impact any Jetstar Airways flights, including international flights between Australia and Southeast Asia, or any Jetstar Japan flights.
