Jetstar Asia, the Singapore-based low-cost airline, has declared its intention to cease all flight operations by July 31, 2025, resulting in over 500 employees losing their jobs.

This decision concludes the presence of the Qantas Group's budget airline in Singapore, a venture that has lasted for two decades.

The announcement, made on June 11, 2025, cites rising supplier costs, exorbitant airport fees, and heightened competition as key factors influencing this outcome.

Jetstar Asia will continue to operate flights in a reduced capacity until the final cessation date.

Passengers affected by cancelled flights will be contacted directly and will receive full refunds or may have the option to be re-accommodated on alternative Qantas Group services.

Founded on November 19, 2004, Jetstar Asia commenced operations on December 13, 2004, and has been based at Singapore Changi Airport, serving a network of 18 destinations across Asia, including Thailand, Malaysia, and the Philippines.

Currently, its fleet consists of 13 Airbus A320 aircraft.

The airline has offered routes between Singapore and key tourist locations in Thailand such as Bangkok, Phuket, and Krabi.

In a statement, a Jetstar Asia spokesperson indicated that the decision was made after a comprehensive review of the airline's operations amid the challenges posed by significantly increased operational costs.

It was noted that some supplier costs surged by up to 200%, significantly altering the airline's cost structure.

Qantas, which owns a stake in Jetstar Asia, has emphasized that this closure will enable it to allocate AUD 500 million towards fleet renewal and redeploy the 13 aircraft currently in use for routes throughout Australia and New Zealand.

Furthermore, the airline's shutdown will not influence operations at its sister carriers, Jetstar Airways in Australia and Jetstar Japan.

Jetstar Asia is projected to incur an AUD 35 million loss in the current financial year.

Over its operational history, the airline has provided numerous low-cost travel options in the fast-growing Asian air travel market, which has increasingly faced stiff competition from other low-cost providers, notably AirAsia and Scoot.

The closure adds to a growing trend of turbulence within the airline industry, particularly within the low-cost segment, as operators struggle with demanding economic conditions and competition.

Jetstar Asia's current workforce is set to receive redundancy entitlements, while management expressed a commitment to support employees in securing new employment opportunities in the aviation sector.