Qantas Group to Close Jetstar Asia Amid Strategic Restructure

Qantas Airways Limited ( (AU:QAN) ) just unveiled an announcement.

Qantas Group has announced the closure of its Singapore-based low-cost subsidiary, Jetstar Asia, as part of a strategic restructure to support its fleet renewal program. This move will recycle up to $500 million in capital, allowing the redeployment of 13 Airbus A320 aircraft to Australia and New Zealand, creating local jobs and offering more low fares. The decision comes amid rising costs and competition in the region, with Jetstar Asia expected to post a $35 million EBIT loss this financial year. The closure will impact 16 intra-Asia routes but not Jetstar Airways’ or Jetstar Japan’s operations. Qantas will provide support to affected employees and customers, and the closure will result in financial impacts estimated at $175 million.

The most recent analyst rating on (AU:QAN) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

More about Qantas Airways Limited

Qantas Airways Limited is a major player in the aviation industry, primarily offering domestic and international air travel services. The company focuses on the Australian and New Zealand markets, with a significant presence in Asia through its subsidiary operations.

Average Trading Volume: 5,087,265

Technical Sentiment Signal: Buy

Current Market Cap: A$16.18B

For detailed information about QAN stock, go to TipRanks’ Stock Analysis page.