A Qantas logo is visible on the tail of an aeroplane at an airport in Sydney, Australia, September 18, 2025. REUTERS/Hollie Adams

Australia's Qantas to exit Jetstar Japan in $52 million share buyback deal

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Aug 4 : Qantas Airways said on Tuesday Jetstar Japan would buy back its 33.32 per cent stake in the budget carrier in an 8.2 billion yen ($52.11 million) deal, paving the way for it to come under Japanese ownership and rebrand under a new name.

As part of the deal signed by Qantas, Japan Airlines and other shareholders, Jetstar Japan will buy back Qantas' minority stake, while the Development Bank of Japan will join as a new shareholder.

Japan Airlines and Tokyo Century will retain their respective stakes.

After Qantas' divestment, Jetstar Japan will rebrand to drop the "Jetstar" brand as it seeks to strengthen its position in Japan's low-cost carrier market.

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Qantas said the move would allow it to redirect capital towards Qantas and Jetstar's operations in Australia and across its international networks.

The share buyback is expected to generate an estimated gain of about A$115 million ($80.49 million) for Qantas in items outside underlying earnings, predominantly in 2027.

Qantas said it would continue to recognise its share of Jetstar Japan's profits or losses until the transaction is completed, expected by June 2027.

Jetstar Japan was established more than a decade ago by Qantas, Japan Airlines, and Mitsubishi Corp.

It began operating as a low-cost carrier in late 2012 from Narita Airport near Tokyo.

Tuesday's announcement follows a non-binding memorandum of understanding between the parties, which was disclosed in February 2026.

($1 = 157.3700 yen)

($1 = 1.4288 Australian dollars)

Source: Reuters

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