The final Jetstar Asia fight will take off on July 31 and 500 Singapore-based workers will lose their jobs as Qantas Group sharpens its focus on Australian and New Zealand markets.
There are no changes to any flights connecting Australian airports to destinations in Asia or changes to Jetstar Japan services.
Some 13 Jetstar Asia Airbus A320 planes will eventually replace leased aircraft and older planes used in Australia and New Zealand, which the airline claims will create 100 local jobs.
In a statement to the ASX, Qantas Group attributed the closure of Jetstar Asia to greater competition, rising supplier costs and high airport fees.
Jetstar Asia is on track to make a $35 million loss by the end of the financial year.
Qantas Group chief executive Vanessa Hudson said it was a "very tough day" for staff and the airline had made low-cost travel accessible to millions of customers over more than 20 years.
"We have seen some of Jetstar Asia's supplier costs increase by up to 200 per cent, which has materially changed its costs base," Ms Hudson said.
The airline said the move would "unlock" up to $500 million in capital which would be reinvested into its core businesses.
Passengers with bookings for cancelled flights will be entitled to refunds or moved onto other flights.
The airline said Jetstar Asia employees were entitled to redundancy benefits and would be re-employed within Qantas Group where possible.
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