Australia’s Qantas announced it will shut down its Singapore-based budget airline, Jetstar Asia, due to rising supplier costs, higher airport fees, and increasing competition among low-cost carriers. This decision will free up AUD 500 million (approximately USD 326.4 million) for Qantas to invest in fleet renewal plans. The 13 Jetstar Asia Airbus A320 aircraft will be gradually redirected to Australia and New Zealand. Jetstar Asia has been struggling with supplier costs rising by up to 200%, significantly impacting its cost base. Group CEO Vanessa Hudson emphasized the company’s ambitious fleet renewal program involving nearly 200 firm aircraft orders and substantial investments in the existing fleet. Jetstar Asia, launched over two decades ago to capitalize on growing demand for low-cost air travel, is expected to post an underlying EBIT loss of AUD 35 million in the current financial year. Operations will cease on July 31, with flights continuing for the next seven weeks. — new from CNN
