Singapore, Singapore — Jetstar Asia, the budget airline headquartered in Singapore, is set to cease operations at the end of July, prompting full refunds for affected passengers. This decision comes as the airline grapples with soaring supplier costs, escalating airport fees, and intensifying competition in the region.

The impending shutdown will result in over 500 job losses, as the fleet begins to wind down operations over the next seven weeks. Passengers are being alerted if their flights are impacted, and those with tickets scheduled for dates after July 31 can expect direct communication from the airline.

While the shutdown marks the end of Jetstar Asia’s journey, the impact will not extend to Australia’s Jetstar Airways or Jetstar Japan, according to Qantas, the airline’s part-owner. Some passengers may be transferred to alternative flights operated by Qantas Group, but those who booked through travel agents or other airlines are advised to reach out to their respective providers.

Jetstar Asia’s suspension will affect 16 routes across Asia, including services from Singapore to Malaysia, Indonesia, and the Philippines. The termination of its operations will enable Qantas to allocate approximately A$500 million to renew its aircraft fleet, redeploying 13 planes to serve routes in Australia and New Zealand.

Qantas Group Chief Executive Vanessa Hudson noted substantial increases in costs, stating that supplier expenses have surged by as much as 200%, significantly altering Jetstar Asia’s financial landscape. The budget airline is projected to incur a loss of A$35 million during the current financial year.

Emotions are high among former passengers, many of whom expressed shock and sadness over the airline’s closure on social media. One user referred to Jetstar Asia as a “wonderful airline” that provided warm and efficient service.

Stephanie Tully, Jetstar Group Chief Executive, emphasized the dedication of the airline’s workforce in light of the shutdown. “Our team delivers outstanding customer service and operational performance,” she said. The airline is committed to providing support and redundancy benefits to affected employees.

Launched in 2004, Jetstar Asia aimed to establish a foothold in Asia’s burgeoning low-cost travel market. However, as competition has increased from rivals like AirAsia and Scoot, sustaining profitability has proven increasingly challenging for the airline.