Income Insurance to fully reimburse policyholders following Jetstar Asia closure

Income Insurance has announced it will fully reimburse affected policyholders following Jetstar Asia’s closure announcement, despite the event not being listed under its insured perils, Singapore Business Review reported.

An Income Insurance spokesperson told The Independent Singapore (TISG) that affected eligible customers who have purchased Income Travel Insurance with pre-trip cancellation cover will be able to claim for unused and prepaid expenses such as accommodation, travel packages, local tours, amusement park tickets and transport expenses (outside of Jetstar air ticket expenses), which include land transfers.

This applies to eligible single-trip and annual travel insurance plans purchased prior to 11 June 2025, 8 a.m.

A full refund, within the stipulated policy limit, will be given if and when affected eligible customers fail to obtain a refund of expenses from their accommodation, transport, or service providers, as stipulated in the travel insurance policy terms and conditions.

On June 11, Qantas announced that its Singapore-based budget airline will cease operations on July 31, affecting more than 500 employees.

Singapore Business Review reported that the company closure is part of its move to shift $500 million in capital towards upgrading its fleet and focusing on core operations in Australia and New Zealand.

Jetstar Asia’s 13 Airbus A320 aircraft will be redeployed to Australia and New Zealand to support local operations, which will create over 100 new jobs there.

While 16 intra-Asia routes will end, Jetstar Airways and Jetstar Japan operations will continue.

For this financial year, Jetstar Asia is expected to report an EBIT loss of $35 million. /TISG

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