Qantas Airways (QAN) Investor Update summary

Strategic restructure and Jetstar Asia closure

• Jetstar Asia will permanently close by July 31, 2025, due to rising costs, higher airport fees, and intensified competition, resulting in unsustainable returns and a forecasted SGD 35 million loss for the year.

• The closure impacts 16 intra-Asia Pacific routes but does not affect Jetstar Airways, Jetstar Japan, Jetstar New Zealand, or international services to and from Australia.

• Jetstar Asia will operate a reduced schedule until its final day, with customer support for refunds and reaccommodation.

• All affected employees will receive redundancy benefits and employment support, with efforts to find roles within the Group or other airlines.

• Up to AUD 500 million in capital will be recycled to support fleet renewal and strengthen core businesses in Australia and New Zealand.

Redeployment of assets and capital allocation

• 13 mid-life Airbus A320 aircraft from Jetstar Asia will be redeployed: six to Jetstar Australia, four to Qantas regional operations, and three to core markets in Australia and New Zealand, creating over 100 local jobs.

• Redeployment aims to lower costs, support growth, and replace older F-100 aircraft in Western Australia.

• Aircraft transition and write-down costs, including accelerated retirement of F-100s, are part of a one-off SGD 175 million group impact, with most costs incurred by FY26.

• Cash impact of SGD 160 million will be offset by working capital benefits and tax adjustments from redeployment.

• Jetstar Asia's A320s will replace leased aircraft in Jetstar Airways' domestic operations, reducing costs and accelerating fleet renewal.

Financial and trading update

• CapEx guidance for FY25 and FY26 remains unchanged despite the restructure.

• Domestic capacity growth for the half will be slightly below previous guidance due to Cyclone Alfred, with a $30 million earnings impact.

• Group International capacity expected to grow by 9%, three points below prior guidance, mainly due to industrial action affecting A330 operations.

• Capacity guidance: Group Domestic +1% in 2H25 and FY25, +5% in 1Q26; Group International +9% in 2H25, +12% in FY25, +6% in 1Q26.

• Jetstar International capacity (including Jetstar Airways' Australian International and NZ operations) is expected to grow by 21% in 2H25 and 25% in FY25.