Investing.com-- Qantas Airways (ASX:QAN) announced on Wednesday it will close its Singapore-based low-cost subsidiary Jetstar Asia, citing soaring operating costs and intense competition in the intra-Asia market.
The airline, which has operated for over 20 years, will cease operations by July 31, 2025, with its 13 Airbus A320 aircraft redeployed to core markets in Australia and New Zealand, the company said in a statement.
Jetstar Asia is expected to post a $35 million underlying EBIT loss this financial year, driven by a 200% surge in supplier costs and high airport fees. The closure will impact 16 intra-Asia routes but leaves Jetstar’s Australian and New Zealand operations unaffected.
The move will unlock $500 million in capital for Qantas’ fleet renewal program, including the arrival of new Airbus A321XLR and A350-1000ULR aircraft, the company said.
Qantas emphasized Singapore remained a key hub, with codeshare partnerships maintaining Asian connectivity.