Qantas Group's Bold Reset: Jetstar Asia Winds Down, Capital Rewinds Home
Qantas Airways Limited (ASX: QAN) is making one of its most strategic moves in recent years with the closure of its Singapore-based subsidiary, Jetstar Asia, effective 31 July 2025. After more than two decades in the regional skies, the intra-Asia budget airline will cease operations, allowing Qantas to free up up to $500 million in capital and redirect aircraft where returns are stronger: Australia and New Zealand.
The decision follows increasing cost pressures, including supplier rate hikes of up to 200 percent, high airport fees, and intense competition in the region. Jetstar Asia is expected to post a $35 million EBIT loss this financial year, reinforcing the need for exit. Importantly, this change will not affect Jetstar’s broader international routes into Asia or domestic operations.
Fleet-wise, 13 Airbus A320s will be returned to service across core markets, including Western Australia’s resources sector. This redeployment is set to support lower cost flying, add capacity, and create over 100 new local jobs.
While the Group expects short-term impacts, including $175 million in redundancy and asset costs and $160 million in cash outflows, it sees longer-term benefits in reduced leasing costs and fleet renewal. The move also aligns with the arrival of new aircraft, including the A321XLR and A350-1000ULR, supporting broader strategic goals such as Project Sunrise.
This is not just an operational shift. It is a focused reallocation of assets toward areas with stronger performance and better long-term returns as the airline looks ahead to FY26.
JB Hi-Fi’s Momentum Grows on Strong Fundamentals and Strategic Expansion
JB Hi-Fi (ASX: JBH) is one of Australia and New Zealand’s leading electronics and home appliance retailers, known for its strong value proposition and efficient retail model. It has quietly built a case for its recent share price growth, supported not by buzz, but by numbers that speak for themselves. In the last six months alone, the stock has climbed from $97.04 on 10 January 2025 to $108.91 as of 9 July 2025. That rise isn’t speculative. It reflects what the company has been delivering on the ground.
Group sales for HY25 rose 9.8 percent to $5.67 billion, driven by solid results across all three segments. JB Hi-Fi New Zealand stood out with a 20 percent jump in sales, while Australia and The Good Guys continued to show resilience. Net profit after tax came in at $285.4 million, up 8 percent. The business also produced strong free cash flow of $515.7 million and held a net cash balance of $555.1 million. The board declared a fully franked interim dividend of 170 cents per share, rewarding shareholders with real returns on top of price appreciation, giving it financial strength that many retailers lack.
What really sets JB Hi-Fi apart is how it combines simplicity with discipline. Its low-cost, multi-brand model keeps margins in check, while investments like the 75 percent stake in premium appliance retailer e&s show smart portfolio building. The company is expanding its loyalty base, growing physical stores, and maintaining a clear focus on profitability.
At a time when many retailers are struggling with margin pressure, JB Hi-Fi has kept its story tight. The market is picking up on that consistency, which is why the recent share price movement feels both steady and well earned.
(Source: Company Announcements)
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