Qantas Says Sayonara to Jetstar Japan in $52M Exit
Synopsis
The Australian carrier is exiting Jetstar Japan through a $52 million buyback, with the airline repurchasing its 33% stake to pave the way for full Japanese ownership and a rebrand.
Qantas has divested itself of its stake in the Japanese low-cost carrier through an $8.2 billion (8.2 billion yen) share buyback and is exiting the investment after over a decade of investment in the carrier, which costs a mere 200 yen per ticket.
It is expected to close by June 2027 if approved by regulators and is projected to generate an estimated A$115 million accounting gain, on top of the underlying earnings of the airline, in fiscal 2027.
The sale-back will result in the airline being entirely under Japanese control. The Development Bank of Japan will take over a stake and Japan Airlines (JAL) and Tokyo Century Corporation will maintain their current holdings.
After completion, the airline will no longer use the Jetstar brand but will operate under a new name, with its network and daily operations in Japan remaining the same.
Capital Reallocation as Portfolio Narrows
The sale is part of Qantas' strategy of focusing funds on its mainline business and fleet investment, the airline said. The airline said it would not impact on Qantas or Jetstar flights between Australia and Japan, nor on current codeshare deals with JAL.
Qantas will continue to be able to recognise a portion of the financial results of Jetstar Japan until the sale is settled. The deal comes after the shareholders signed a non-binding MOU in February before full terms were agreed upon this month.
The shift also coincides with a decision by Qantas to wind up its Jetstar Asia business, saying costs at suppliers and airports have continued to rise, and competitive pressures in Southeast Asia have made the business unprofitable for the airline.
Aviation Market Continues to Recover
In 2012, Jetstar Japan was established as a joint venture between Qantas, Japan Airlines and Mitsubishi Corporation, and is one of Japan's largest low-cost domestic carriers from Tokyo Narita Airport.
The new deal follows further growth in demand for air travel in the Asia-Pacific region. The Asia-Pacific region surged ahead of Europe (5.3%) and North America (3.1%) with year-on-year growth of 9.5% in international passenger demand in June 2026, according to the International Air Transport Association (IATA) Air Passenger Market Analysis.
Qantas also has a strong position from a financial perspective to the transaction. The airline posted A$2.39 billion in underlying profit before tax and A$1.61 billion in statutory profit after tax in its annual results for FY2025, with over 56 million passengers traveling on the Qantas and Jetstar networks over the course of the year.
It is also advancing its fleet renewal strategy with the addition of Airbus A321XLR and A350 planes for future international services.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
