• Qantas announces closure of Jetstar Asia amid rising costs and competition.
• Closure to result in up to 500 job losses and cessation of services by July 31.
• 13 Airbus A320 aircraft will be redirected to operations in Australia and New Zealand.

Australia’s Qantas Airways has decided to shut down Jetstar Asia, its Singapore-based budget airline, citing rising supplier costs, high airport fees, and fierce competition from other low-cost carriers in the region. This strategic move will free A$500 million (US$326.40 million) for Qantas to invest in fleet renewals, as the airline struggles to maintain profitability amid increasing operational challenges, according to Channel News Asia, South China Morning Post, and Business Insider.

Jetstar Asia will cease operations on July 31 after over 20 years of service, with customers on canceled flights receiving full refunds offered by Qantas. Group CEO Vanessa Hudson highlighted that some supplier costs have risen by up to 200%, significantly impacting the airline's cost structure. Despite delivering reliable service, Jetstar Asia's performance has not matched the stronger returns seen in Qantas’ core markets, as stated by BBC and Reuters.

The closure is set to lead to the loss of approximately 500 jobs in Singapore. Qantas is providing redundancy benefits and assisting employees in seeking new opportunities both within the company and in other airlines. Additionally, the fleet of 13 Airbus A320 aircraft from Jetstar Asia will be redirected to bolster operations in the Australian and New Zealand markets, according to The Jakarta Post and Business Insider.

Over the years, Jetstar Asia has operated 16 intra-Asia routes but has struggled to keep up in a competitive environment rife with rival budget airlines like AirAsia and Scoot. Qantas maintains that its other subsidiaries, Jetstar Airways and Jetstar Japan, will remain unaffected by this operational shutdown, ensuring continued service to customers in those markets, reports South China Morning Post and Reuters.