Singapore-based budget airline Jetstar Asia will close at the end of July with affected passengers to be offered full refunds.
The low-cost airline has struggled with rising supply costs, high airport fees and increased competition in the region.
More than 500 employees will be laid off.
According to its part-owner Qantas, the shutdown of Jetstar Asia will not impact the operations of Australia-based Jetstar Airways, nor those of Jetstar Japan.
The budget carrier will offer progressively reduced service over the next seven weeks and travellers will be notified if their flight is affected.
Passengers with tickets to fly after the July 31 closure will be contacted by the airline.
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