The Qantas Group has formalised its withdrawal from low-cost subsidiary Jetstar Japan, after signing a binding agreement with Japan Airlines (JAL) covering the sale of its entire 33.32% holding in the Tokyo Narita-based carrier.
The deal remains subject to regulatory approval and is expected to be completed by June 2027.
Under the transaction, Jetstar Japan will repurchase Qantas’ shares for JPY8.2bn, while the state-backed Development Bank of Japan will join the airline as a new investor. JAL and leasing and financial services group Tokyo Century Corporation will retain their existing shareholdings, creating an entirely Japanese-owned structure.
Following the Australian group’s exit, Jetstar Japan will abandon the Jetstar name and adopt a new brand and corporate identity. The airline, which began operations from Narita in 2012, will continue as a Japanese low-cost carrier serving domestic and regional international markets. It currently operates a fleet of Airbus A320ceos and A321LRs.
Qantas said the disposal would allow it to redirect capital towards the domestic and international activities of Qantas and its wholly owned low-cost subsidiary, Jetstar Airways, in Australia. The transaction is expected to produce an estimated AU$115m gain outside the group’s underlying earnings, predominantly during the 2027 financial year. This includes sale proceeds and non-cash benefits associated with historic foreign-currency translation gains.
The divestment will not affect Qantas or Jetstar services between Australia and Japan, while existing codeshare arrangements with JAL will also remain unchanged.
The deal was first announced in February 2026, with the signing of a non-binding memorandum of understanding for the transaction between the Australian and Japanese flag carriers.
