Jetstar Asia cites soaring operational costs and fierce post-pandemic competition as key factors behind its decision to cease operations, affecting 500 employees and dozens of regional routes.
Singapore-based low-cost airline, Jetstar Asia, has officially confirmed it will permanently cease all operations as of the 31st of July, 2025. The announcement was made directly by the Jetstar Group CEO, Stephanie Tully, in a press statement issued on Wednesday, the 11th of June.
“Our costs in Singapore have risen significantly,” she said.
Tully cited double-digit increases in fuel prices, airport charges, ground handling services, and security costs as the primary reasons behind the decision. Furthermore, she explained that, since its establishment 20 years ago, Jetstar Asia has only recorded a profit in six of those years. This year, in particular, the airline is forecast to suffer an operational loss of AU$35 million (approximately Rp370 billion).
Moreover, the increasingly intense post-pandemic competition with other carriers such as AirAsia, Scoot, and VietJet has led to lower ticket prices and shrinking profit margins for Jetstar Asia.
The closure will also affect approximately 500 Jetstar Asia employees, who are set to be made redundant. On top of that, the airline’s fleet of 13 Airbus A320 aircraft will be redeployed to the Australian and New Zealand markets to replace Qantas’ leased aircraft.
Qantas Group has assured that all obligations to customers, employees, and partners will be met in a responsible manner. For prospective passengers, the airline has confirmed it will provide full ticket refunds, as announced by Jetstar Asia’s management via its official website on Wednesday. Passengers will also be offered the option to be transferred to alternative services within the Qantas Group, where available.
In response to the announcement, the Director of Air Transportation at Indonesia’s Ministry of Transportation, Agustinus Budi Hartono, has called on Jetstar Asia to fulfil its obligations to consumers in Indonesia.
“We are requesting that Jetstar Asia issue an official notification and fully honour passengers’ rights, including ticket refunds,” Hartono stated in Jakarta on Thursday, the 12th of June.
Jetstar Asia previously operated 16 intra-Asia routes from Changi Airport, including services to Indonesia such as Jakarta, Surabaya, Medan, Denpasar, and Labuan Bajo.