• Closure of intra-Asia airline Jetstar Asia to unlock $500 million in capital
• 13 Jetstar Asia aircraft to be redeployed to Australia and New Zealand
• Closure to result in one-off costs of $175 million

Qantas Airways Limited has announced a strategic restructure that includes the closure of its intra-Asia airline, Jetstar Asia. The decision, made together with majority shareholder Westbrook Investments, is due to growing challenges faced by Jetstar Asia, including rising supplier costs, high airport fees, and intensified competition in the region. Despite delivering exceptional customer service and operational reliability, Jetstar Asia has been unable to deliver returns comparable to the stronger performing core markets in the Qantas Group. The airline is expected to post a $35 million underlying EBIT loss this financial year prior to the closure decision. Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operation on 31 July 2025. The closure of Jetstar Asia only impacts the intra-Asia routes operated by the airline from its base in Singapore and does not affect Jetstar Airways' domestic and international operations in Australia and New Zealand or Jetstar Japan. The closure will unlock up to $500 million in fleet capital to be recycled into the Group's core businesses and improve long-term returns. Jetstar Asia's 13 mid-life A320 aircraft will be progressively redeployed to core markets in Australia and New Zealand to support fleet renewal and growth, creating more than 100 local jobs and more low fares. The closure will result in one-off redundancy and restructuring costs, as well as the non-cash expensing of historical foreign currency translation losses and asset write-downs, with a combined impact currently estimated at approximately $175 million.

The closure of Jetstar Asia is expected to result in a $35 million underlying EBIT loss in the current financial year. The direct pre-tax cash impact will be approximately $160 million, predominantly in FY26, which will be materially mitigated by working capital benefits from growth in Jetstar Airways and consequential tax adjustments.

The Qantas Group is currently undertaking the most ambitious fleet renewal program in its history, with almost 200 firm aircraft orders and hundreds of millions of dollars being invested into its existing fleet. The closure of Jetstar Asia will support this fleet renewal program and prioritize capital allocation to the Group's stronger performing segments and strategic growth initiatives.