Jetstar has announced the suspension of two routes between Australia and New Zealand, attributing the decision to weak demand and escalating operating costs. The budget airline will cease services on the Sunshine Coast to Auckland and Cairns to Christchurch routes effective October 24.
According to Jetstar, the decision was driven by rising operating expenses, including an increase in Australia's Passenger Movement Charge from $70 to $80 per traveller, along with higher aviation taxes, transport fees, government charges, and airport charges on both sides of the Tasman. The airline stated that these growing costs continue to pressure international routes, particularly for low-cost carriers.
Impact on Passengers and Industry Warnings
Customers booked on the affected routes will be rebooked onto alternative services. Airlines for Australia and New Zealand (A4ANZ) had previously warned that escalating taxes, fees, charges, and regulatory costs would inevitably lead to higher airfares, fewer services, or both.
A4ANZ Chair Professor Graeme Samuel said Jetstar's decision highlights the pressure facing marginal routes, especially those connecting regional communities. “Airlines are already grappling with a significant increase in fuel costs driven by conflict in the Middle East. At the same time, governments continue to layer on additional taxes, charges and regulatory obligations,” he said. “Affordable air travel should not become a luxury. It is vital to regional connectivity, economic growth and social inclusion. Governments must carefully consider the cumulative impact of their decisions before more services are lost and more travellers are priced out of the market.”
Government Response and Broader Context
Infrastructure Minister Catherine King's office described the route suspensions as “disappointing.” A spokesperson said the Albanese Government is engaging strongly across the entire aviation sector regarding the fuel situation, including frequent fuel security meetings with key representatives from airlines and the broader aviation sector. “We are focussed on securing our fuel supply and keeping Australia moving. We're particularly focussed on ensuring regional communities remain connected to the critical services they need, and will continue to engage closely with industry as this situation continues,” the spokesperson added.
Despite the suspensions, Jetstar reaffirmed its commitment to expanding low-fare travel across the Tasman. The airline will relaunch flights between Sydney and Christchurch from October 26. Jetstar carried more than 700,000 passengers across the Tasman in 2025, up 9% on the previous year, and said it remains focused on growing its Australia-New Zealand network.
Qantas Increases Capacity
Meanwhile, Qantas will add more than 15,000 seats between Sydney, Melbourne, and Brisbane and Queenstown between October and March, while increasing capacity between Sydney and Auckland by up to 10%. This move contrasts with Jetstar's service reductions, indicating a mixed outlook for trans-Tasman air travel.
