Qantas and Jetstar Launch Three New Indonesia Routes Starting December 2026

Qantas and Jetstar are launching three new nonstop routes to Indonesia after Australia and Indonesia updated their bilateral air services agreement for the first time in 15 years. The deal adds 5,000 seats per week, with Qantas claiming 4,500 of them. Flights begin in December 2026 and roll out through August 2027. Bali attracted 1.6 million Australian visitors last year, making it the nation’s top international destination.

Three new routes and one expanded service

Qantas will operate daily Boeing 737-800 flights from Perth to Jakarta starting December 14, 2026, competing head-to-head with Batik Air. Brisbane to Bali launches August 1, 2027, also on the 737-800. Jetstar will run daily Airbus A321LR service from Western Sydney to Bali from March 15, 2027. Qantas will also upgrade its Melbourne-Jakarta route from four weekly A330 flights to daily service by October 31, 2027, using the more efficient A321XLR.

Why the bilateral agreement matters

The updated agreement between Australia and Indonesia is the first in 15 years. It grants both nations’ airlines an extra 5,000 seats per week on routes between the countries. Transport Minister Catherine King said the capacity boost supports growing trade and business ties. Qantas expects to fully utilize its 4,500 allocated seats by November 1, 2027.

Bali’s pull on Australian travellers

Bali has become Australia’s most popular international holiday destination. More than 1.6 million Australians visited in 2025, and all major Australian cities already have nonstop flights there. The routes must be submitted to Australia’s International Air Services Commission for approval. Jetstar’s Western Sydney service will connect Australia’s newest major airport to one of its busiest leisure destinations.

What this means for Qantas shareholders

Meyka rates QAN.AX a B+ with a buy suggestion, citing strong fundamentals across profitability and return metrics. The stock trades at a PE of 10.3, well below the 50-day average of 9.54. RSI sits at 38, suggesting room for recovery. Expanding into high-demand Indonesia routes boosts revenue potential, though the airline faces high debt (6.9x equity) and negative free cash flow of -A$0.13 per share. The expansion signals management confidence in post-pandemic demand for leisure travel.

Final Thoughts

Qantas and Jetstar’s Indonesia push taps into strong Australian demand for Bali while deploying 4,500 of the 5,000 newly available weekly seats. With Meyka grading the stock B+ and the PE at 10.3, the expansion adds growth optionality to a recovering airline facing structural debt challenges.

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