Jetstar Asia Gets Grounded for Good

Hey Superheroes,

The ASX 200 hit a fresh record high this week, breaking through 8,600 points for the first time ever as investor optimism surged on the back of cooler U.S. inflation data. 

U.S. Core CPI rose just 0.2% in May, fuelling hopes that the U.S. Federal Reserve will begin cutting rates, especially given President Trump’s push for a full rate cut. That momentum sent the S&P 500 and Nasdaq into the green as well.

But not all markets cruised through the whole week. Rising Middle East tensions saw oil prices spike by more than 8%, rattling global sentiment and pushing some Asian indices into the red. 

Qantas shuts Jetstar Asia down for good

Qantas announced this week it will shut down its Singapore-based carrier, Jetstar Asia, after 20 years of operations. 

The decision comes as part of a broader post-COVID restructure to streamline the group’s international business.

With travel patterns shifting, Qantas is refocusing its growth strategy on high-demand international routes out of Australia and New Zealand. That means less need for a low-cost hub out of Changi.

🔧 The numbers and what they mean

Jetstar Asia currently accounts for around 8% of the Jetstar Group’s total seat capacity. While the airline returned to profitability last year, Qantas says the growth outlook has weakened as Aussie travellers increasingly opt for direct flights over intra-Asia connections.

The closure will result in a pre-tax cash impact of approximately A$160 million, mostly in FY26, alongside a total accounting impact of A$175 million due to asset write-downs and foreign currency translation losses. 

Qantas will redeploy 13 Jetstar Asia aircraft to its domestic and regional networks, unlocking up to A$500 million in capital to support its broader fleet renewal strategy.

🛬 Where to from here?

Qantas remains bullish on demand recovery, especially on long-haul and trans-Pacific routes. The Jetstar brand will continue operating across Australia, New Zealand and Japan, but its Singapore ambitions are officially over.

For investors, the shutdown suggests Qantas is willing to risk short-term turbulence for potentially higher long term returns, staying agile and reallocating capital to higher-yield segments.

✈️ Meanwhile, Virgin prepares for take-off…

Last week, we covered Virgin Australia’s plans to return to the ASX after years in private hands. Virgin has since confirmed a listing date of 24 June 2025 under the ticker VGN.

Monash IVF CEO Exits After Embryo Blunder

Michael Knaap has stepped down as CEO of Monash IVF (ASX:MVF) following a major embryo mix-up at its Sydney clinic. The incident saw an embryo mistakenly transferred to the wrong patient, resulting in a pregnancy that had to be terminated.

👩‍⚕️ A rare but serious failure

Monash IVF has confirmed the breach was caused by a deviation from lab protocol by a staff member. While the company says it’s a “one-off”, the ramifications are significant – both medically and reputationally.

The error only came to light after routine genetic testing revealed the embryo did not belong to the intended parents. An internal review, now complete, led to a wave of boardroom changes.

📉 Market reaction and investor impact

Shares in Monash IVF rose after the resignation announcement, recovering slightly from earlier losses. 

But the stock still remains about 50% below its January levels. Analysts warn the company faces long-term reputational risks and potential regulatory reform as the government prepares to review national ART (assisted reproductive technology) standards.

For now, Monash has appointed its CFO as interim CEO and committed to restoring patient trust through tighter governance.

🔦  Some other things we’re shining the Spotlight on:

• DRONESHIELD FLIES OVER EU: DroneShield (ASX:DRO) is up nearly 10% this week after announcing a European expansion plan, including a local manufacturing facility and alignment with the EU’s €800 billion Readiness 2030 program. 
• ROCKET ZIP: Zip (ASX:ZIP) jumped 15% on Wednesday following a full-year earnings guidance upgrade. The BNPL firm now expects cash EBTDA of A$160 million for FY25, driven by strong U.S. transaction volume growth and improved repayment rates.
• DESIGNER DISCOUNTS: Cettire (ASX:CTT) plunged over 30% yesterday after issuing its second profit downgrade in two months. The luxury e-retailer flagged a Q3 loss, margin pressures and a weakened cash position, prompting speculation about a potential capital raise.

Keep up to date on the markets by following us on Instagram @superheroau.