Qantas and Japan Airlines Sign Binding Agreement on Jetstar Japan Ownership Restructure

The Qantas Group and Japan Airlines (JAL) have signed a binding agreement to restructure the ownership of Jetstar Japan, paving the way for the Development Bank of Japan (DBJ) to join the airline as a new shareholder while Qantas exits its investment.

Subject to regulatory approvals, Qantas will divest its 33.32% minority stake through a share buyback valued at JPY8.2 billion. DBJ will acquire an equity interest in Jetstar Japan, while JAL and Tokyo Century Corporation will retain their existing shareholdings. The transaction is expected to be completed by June 2027.

Following Qantas’ exit, Jetstar Japan will transition to a Japanese capital-led ownership structure and rebrand under a new name, replacing the Jetstar brand as it seeks to strengthen its position in Japan’s low-cost carrier market.

Qantas said the divestment will allow the group to redirect capital toward its domestic and international operations in Australia. The airline also confirmed there will be no impact on Qantas or Jetstar services between Australia and Japan or on existing codeshare arrangements with Japan Airlines.

The transaction is expected to generate an estimated gain of approximately A$115 million for the Qantas Group, primarily in fiscal year 2027, including proceeds from the share sale and the recognition of historical foreign currency translation gains. Until the transaction closes, Qantas will continue to recognize its share of Jetstar Japan’s profits or losses.