QANTAS Airways said on Tuesday it would sell its stake in low-cost carrier Jetstar Japan to focus on its core domestic offerings as the Australian flag carrier faces softer corporate demand and higher fuel costs.
The Australian airline will sell its 33.32 percent minority stake in Jetstar Japan, Qantas said without providing any further details.
Japan Airlines and Tokyo Century Corp. will retain their 50 percent and 16.7 percent voting rights, respectively, while the Development Bank of Japan intends to join as a shareholder, the companies said in a joint statement.
The stake-sale decision comes after the closure of its Singapore-based Jetstar Asia in July, and will enable Qantas to focus resources on its core operations in Australia, Qantas and Jetstar Airways, even as it undertakes its largest fleet renewal programme ever while grappling with slower-than-expected growth.
In November, it forecast domestic unit revenue growth at the lower end of its 3 to 5 percent earlier projection for the six months to December 2025, with capacity constrained by delays in returning its A380s to service.
Qantas shares were trading 0.7 percent higher at A$10.245 apiece, largely in line with a 0.7 percent gain in the broader ASX 200 benchmark index.