Jetstar Asia closure rattles Krabi

Tourism operators in Krabi are bracing for the impact of Qantas Group's decision to permanently shut down Jetstar Asia, its Singapore-based budget airline, amid concerns the move could reduce tourist arrivals from one of the province's most important short-haul markets.

- Bangkok Post

Qantas announced on June 11 that Jetstar Asia will cease operations on July 31, 2025, as part of what it described as a "strategic restructure" of its business. The closure will result in 500 job losses in Singapore, with staff receiving redundancy packages and support in finding new employment. The airline's fleet of 13 Airbus A320 aircraft will be progressively redeployed to Australia and New Zealand, creating more than 100 new jobs in those markets.

The decision comes after Jetstar Asia struggled with escalating operational costs. According to Qantas, supplier costs for the airline have increased by as much as 200%, while airport fees and other aviation charges have continued to climb, making the carrier's business model unsustainable. Jetstar Asia was expected to post an underlying loss of AUS$35 million (B742mn) in this financial year prior to the decision to shut down.

"Despite our best efforts to offset these rising costs, they are expected to continue into the foreseeable future, putting unsustainable pressure on Jetstar Asia's ability to offer low fares," Qantas Group CEO Vanessa Hudson said in a statement.