Qantas and Singaporean aircraft at Brisbane International Airport. Photo: ANDREW KACIMAIWAI
Qantas is to close its Jetstar Asia operations as it ramps up its seasonal capacity across the Tasman to New Zealand.
Qantas says closing its Singapore-based Asian subsidiary will allow it to ‘recycle’ up to $500 million in capital and redeploy 13 Airbus A320s to domestic and New Zealand routes.
Sixteen Asian routes will be dropped but with no changes to Jetstar Airways and Jetstar Japan services into Asia; all of Jetstar’s international services remain unchanged.
Qantas Group CEO Vanessa Hudson says Jetstar Asia “has been a pioneering force in the Asian aviation market for more than 20 years”.
“This is a very tough day for them (Jetstar Asia),” she says.
“Despite their best efforts, we have seen some of Jetstar Asia’s supplier costs increase by up to 200% which materially changed its cost base.”
SINAGPORE CLOSURE
Qantas says its Singaporean-based Asian subsidiary has been hit by rising supplier costs, high airport fees, and intensified competition; the airline had been expected to post a $35 million underlying EBIT loss this financial year before the closure decision was made.
The airline will fly on a progressively reduced schedule before its final day on July 31.
Qantas says customers with existing bookings on cancelled flights will be offered full refunds or reaccommodated with other airlines where possible.
The closure, redundancies and restricting costs is expected to cost $175m, Qantas says.
The Australian air carrier will use the $500m in fleet capital that will be freed to redeploy 13 mid-life A320s to replace leased aircraft including those serving on regional mining-related routes in Western Australia.
Qantas has already announced new Perth-Newcastle (NSW) and Perth-Hobart (Tasmania) services from September to support the mining sector.
Jetstar is gearing up to fly direct from Sydney and Gold Coast into Hamilton Airport in New Zealand.
“We are currently undertaking the most ambitious fleet renewal program in our history, with almost 200 firm aircraft orders and hundreds of millions of dollars invested into our existing fleet,” Hudson says.
Qantas says Jetstar Asia was expected to have lost $25m this year after traffic fell due to Tropical Cyclone Alfred in March, costing the airline $30m.
Qantas says its 2025 first-half growth is expected to fall by 3% grow, down to 9%, due to strike action related to Qantas’ wet lease of Finnair aircraft and crew.
SEASONAL BOOST IN NZ SERVICES
Qantas says it is boosting its eastern seaboard peak season capacity across the Tasman by up to 20% from December 15, 2025, to January 26, 2026, which will add 60,000 more seats.
More weekly flights will be added on the following routes:
- Sydney – Auckland: up to six extra flights (16% increase on the current 35 flights).
- Sydney – Christchurch: up to seven extra flights (47% up 14 flights).
- Sydney – Wellington: Up to five extra flights (31% up on 14 flights).
- Melbourne – Auckland: Up to seven extra flights (23% up on 28 flights).
- Melbourne – Christchurch: Up to three extra flights (26% up on 11 flights).
- Melbourne – Queenstown: Up to two extra flights per week (50% up on 4 flights).
- Brisbane – Queenstown: Up to three extra flights (75% up on 4 flights a week).
Qantas will introduce its Boeing 787 Dreamliner on its Auckland-Brisbane service three times a week at first then as a daily service from October.
The airline already operates the Dreamliner on its Sydney-Auckland-New York route.
CEO Qantas International Cam Wallace says there has been “huge growth” for them in the New Zealand market.
“…. Qantas will have the most frequency between Australia and New Zealand at one of the busiest travel periods of the year,” he says.
Tourism New Zealand Regional Director for Australia, Andrew Waddel welcomes the news.
“With an increase across all four major ports, there are even more options for travellers to kick start their Aotearoa/New Zealand getaway,” he says.
“We welcome the increase in capacity from Qantas.”
Qantas has already announced it will launch an Adelaide-Auckland service from October 31 which will connect with its Sydney-Auckland-New York service.
A Perth-Auckland service is due to start on December 8, also making use of Auckland as a gateway for the NY service.
