Jetstar Asia to cease operations on July 31; over 500 employees in Singapore affected
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SINGAPORE - Singapore-based low-cost airline Jetstar Asia will cease operations on July 31 as part of a “strategic restructure” by its parent company, Australian flag carrier Qantas.
More than 500 employees in Singapore will be laid off
Jetstar Asia said in a statement on June 11 that it will continue to operate flights out of Singapore for the next seven weeks, with a progressively reduced schedule until its final day of operations on July 31.
Qantas said 16 intra-Asia routes will be impacted by the closure of Jetstar Asia, with no changes to Jetstar Airways (JQ) and Jetstar Japan (GK) services into Asia.
Jetstar Airways’ international services in and out of Australia will also remain unchanged.
Jetstar Asia flies to major hubs in South-east Asia such as Bangkok, Manila, Jakarta and Kuala Lumpur, as well as other places like Bali, Surabaya, and Colombo in Sri Lanka.
The airline operates about 180 weekly services at Changi Airport and carried about 2.3 million passengers in 2024, accounting for around 3 per cent of the airport’s total traffic.
Customers with bookings that are impacted
The budget carrier, which operates out of Changi Airport Terminal 4, has set up a dedicated webpage with information for its customers, and its Travel Alert page will be regularly updated with the latest advice.
But passengers told The Straits Times that they were unable to request refunds on the airline’s website, and were also having difficulty getting help through Jetstar’s contact centre.
Others were disappointed that the airline’s closure had resulted in travel delays for flights on June 11.
ST understands that Jetstar Asia had suspended flights at Changi Airport on the morning of June 11, so its crew would not find out about the airline’s closure while in the air.
Seven flights were cancelled, while 11 others were re-timed on June 11. Departure schedules for June 12 indicate that at least five Jetstar Asia flights have been cancelled.
Mr Alex Tay, 50, who planned to fly to Kuala Lumpur in September, said he felt cheated by the airline’s closure.
“They should have stopped booking flights beyond their closing date. But they kept bookings open and the announcement came just like that,” he said.
Jetstar Asia said the decision to cease operations comes amid escalating supplier costs, airport fees and aviation charges in recent years, as well as growing capacity and competition in the region.
Qantas chief Vanessa Hudson said some supplier costs have risen by up to 200 per cent.
Jetstar Asia was expected to post a loss of A$35 million (S$29.3 million) before interest and taxes this financial year, prior to the decision to shut down.
It has been bleeding cash for several years now, according to Accounting and Corporate Regulatory Authority records.
The airline lost $165.4 million in the financial year ending June 30, 2021, and $37.2 million in the following financial year, during the Covid-19 pandemic.
It managed to turn a $12.5 million profit in 2023, but slipped back into the red with a $7.1 million loss in the 12 months ending in June 2024.
On June 11, Jetstar Asia said it foresees costs continuing to rise in future, putting “unsustainable pressure” on the airline’s ability to offer low fares, which it said is fundamental to its business model.
Jetstar Asia chief executive John Simeone said: “Unfortunately, despite our best efforts, the market conditions have ultimately impacted our ability to continue to offer the everyday low fares that are our DNA.”
The Singapore Manual & Mercantile Workers’ Union (SMMWU) said it has worked closely with Jetstar Asia’s management to ensure affected workers receive fair compensation.
Retrenched employees will receive a redundancy payment of four weeks per year of service, a bonus for this financial year, a special “thank you” payment and other benefits.
SMMWU secretary-general Andy Lim said the union will support employees by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary.
A Singapore Airlines (SIA) spokesperson said it was working closely with Jetstar Asia and the National Trades Union Congress to “explore employment opportunities” for retrenched staff within SIA Group. The spokesperson said dedicated channels have been set up to expedite applications of affected staff.
More than 500 employees in Singapore will be laid off due to the closure.
ST PHOTO: GIN TAY
Changi Airport Group (CAG) said it was disappointed by Jetstar Asia’s decision to exit the Singapore market after 20 years of operations here, but respects the carrier’s commercial considerations.
“Our immediate priority is to ensure passengers are well supported and to minimise disruption during the transition period,” the airport operator said in a statement.
Of the 16 routes affected by Jetstar Asia’s closure, 12 are served by 18 other airlines offering more than 1,000 weekly services, CAG said.
“We will monitor the routes affected by Jetstar Asia’s exit, and where additional capacity is needed, we will actively engage other airlines to fill the gap,” it added.
CAG will also work to restore connectivity to the four destinations served exclusively by the budget carrier from Changi. They are Broome in Australia, Labuan Bajo in Indonesia, Okinawa in Japan, and Wuxi in China.
“CAG values its partnership with the Qantas Group and will continue to collaborate with Qantas and Jetstar Airways to support their growth and presence at Changi Airport,” it added.
The Civil Aviation Authority of Singapore said it would work with CAG to boost Changi’s connectivity, and noted that the air hub remains “well connected and well positioned to serve rising air travel demand”.
Ground handler Sats said it is working closely with Jetstar Asia to ensure a smooth and orderly transition.
The Qantas Group said it would provide support for Jetstar Asia to continue to meet its financial obligations while operations wind down.
“Jetstar Asia has been part of the Jetstar family for more than 20 years and this is an incredibly difficult and sad day for our people, our customers and the entire Jetstar Group,” said Jetstar Group chief executive Stephanie Tully.
Following the airline’s closure, its 13 Airbus A320 aircraft will be progressively redeployed across the Qantas Group to support fleet renewal and growth in the Australia and New Zealand businesses, in line with underlying demand.
Additional reporting by Samantha Lee
