Qantas sells Jetstar Japan stake for ¥8.2B

• Qantas is exiting its 33.32% stake in Jetstar Japan through a share buyback.
• The ¥8.2 billion deal is expected to deliver an estimated $115 million earnings gain.
• The divestment allows Qantas to redirect capital towards its core Australian aviation operations.

Qantas Airways (ASX:QAN) will sell its 33.32% stake in Jetstar Japan through a ¥8.2 billion share buyback.

The binding agreement follows a non-binding memorandum of understanding announced in February to facilitate the ownership transition.

The Development Bank of Japan will acquire the equity interest as a new shareholder, while Japan Airlines and Tokyo Century maintain their positions.

Qantas stated that the transaction is expected to complete by June 2027 and deliver an estimated $115 million earnings gain.

Following the announcement, the Qantas share price was up at $10.32.

The airline stated that the divestment will enable capital investment to be redirected towards its Australian domestic and international services.

Following completion of the sale, Jetstar Japan will rebrand under a new identity while maintaining its current flight schedule.