Jetstar Asia to cease operations by 31 July; staff to receive enhanced retrenchment package

Jetstar Asia will cease operations by 31 July 2025, with more than 500 employees set to be retrenched as part of Qantas Group’s strategic restructure.

Affected workers will receive four weeks’ salary for every year of service, alongside other payouts and support measures, under a retrenchment package developed with union involvement.

Retrenchment package details

According to the airline, in addition to the redundancy payment, employees will also be granted a financial year 2025 bonus, a special thank-you payment, and continued access to staff travel privileges for a period equal to their years of service.

A Jetstar Asia spokesperson said: “We are committed to supporting team members who are impacted by this announcement the best way we can.”

The compensation package was developed in line with the Tripartite Advisory on Responsible Retrenchment and negotiated in consultation with the Singapore Manual and Mercantile Workers’ Union (SMMWU).

Union involvement and worker support

SMMWU secretary-general Andy Lim stated that the union worked closely with management to ensure fair compensation and respectful handling of the retrenchment process.

He added that SMMWU, together with the wider Labour Movement, is providing career advisory services and job placement assistance through the NTUC Aviation and Aerospace cluster of unions.

In a statement, the union said: “The union would leverage the Labour Movement network, including the NTUC Aviation and Aerospace cluster of unions, to assist affected members and workers with job placement and career advisory services within the A&A industry.”

National taskforce support

The Taskforce for Responsible Retrenchment and Employment Facilitation, which comprises representatives from the Ministry of Manpower, Workforce Singapore, NTUC, and the Employment and Employability Institute (e2i), is also engaged in supporting affected staff.

Job-matching assistance is being coordinated by SMMWU and e2i, with eligible union members able to access the Union Training Assistance Programme (UTAP) to offset skills-upgrading costs.

Affected workers can also seek support through the SkillsFuture Jobseeker Support scheme, which offers temporary financial aid of up to S$6,000 over six months for involuntarily unemployed individuals.

Reasons for closure

Qantas Group confirmed the closure on 11 June 2025, citing unsustainable financial pressures.

Vanessa Hudson, Qantas Group Chief Executive Officer, acknowledged the airline’s history in the region: “Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.”

However, the group reported that supplier costs for Jetstar Asia had increased by as much as 200 per cent. High airport charges and intensifying regional competition further weakened its cost structure.

Qantas projected an underlying EBIT loss of US$35 million for Jetstar Asia in the current financial year, leading to the decision to cease operations.

Scope of closure

Jetstar Asia’s shutdown will be limited to its Singapore-based routes. Other Jetstar entities, including Jetstar Airways in Australia and New Zealand and Jetstar Japan, remain unaffected.

Until 31 July, Jetstar Asia will operate on a reduced flight schedule. Customers holding bookings on affected routes will be eligible for refunds or rebooking options.

Industry and community impact

Jetstar Asia has been based in Singapore for over two decades, serving destinations across Southeast and North Asia. Its closure marks a significant shift in Singapore’s aviation sector, with one of the region’s established low-cost carriers exiting the market.

The move comes amid broader consolidation and restructuring efforts in the global airline industry, where rising costs, fuel price volatility, and competitive pressures are reshaping operations.

Industry observers note that while Singapore remains a major aviation hub, low-cost airlines face tightening margins. The closure of Jetstar Asia may create opportunities for other budget carriers to fill capacity gaps on regional routes.

Looking ahead

For employees, the focus remains on securing new opportunities. The collaboration between Jetstar Asia, unions, and government taskforces reflects Singapore’s established tripartite approach to managing retrenchments.

Authorities have reiterated their commitment to ensuring that retrenchment exercises are conducted fairly, with affected workers supported in their transition.