The Qantas Airways Ltd (ASX: QAN) share price is catching some tailwinds today.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $10.64. In morning trade on Wednesday, shares are changing hands for $10.69 apiece, up 0.5%.

For some context, the ASX 200 is up 0.4% at this same time.

Here's what's happening.

Qantas share price gains on Jetstar Asia closure

Investors are bidding up the Qantas share price today after the company announced that it was shuttering its intra-Asia airline, Jetstar Asia.

Qantas made the decision together with majority shareholder, Westbrook Investments. The company said that Jetstar Asia has been impacted by rising supplier costs, high airport fees, and intensified competition in the region.

Management expects Jetstar Asia to post a $35 million underlying earnings before interest and tax (EBIT) loss this financial year, prior to the closure decision.

The ASX 200 airline said the move will enable it to recycle up to $500 million in capital, which will support its ongoing fleet renewal program.

"We are currently undertaking the most ambitious fleet renewal program in our history, with almost 200 firm aircraft orders and hundreds of millions of dollars being invested into our existing fleet," Qantas CEO Vanessa Hudson said.

The closure that's offering a boost to the Qantas share price today is also intended to bolster Qantas' service in its core markets in Australia and New Zealand. The company said that 13 Jetstar Asia Airbus A320 aircraft will be progressively redeployed to Australia and New Zealand, "bringing more low fares and more local jobs".

All told, 16 intra-Asia routes will be impacted by the closure of Jetstar Asia. There are no planned changes to Jetstar Airways and Jetstar Japan services into Asia. Qantas stressed that all of its Jetstar Airways international services in and out of Australia remain unchanged.

Jetstar Asia will continue to operate flights on a progressively reduced schedule. Its final day of operation is scheduled for 31 July.

What did management say?

Elaborating on the Jetstar Asia closure that's helping lift the Qantas share price today, Hudson said:

Jetstar Asia has been a pioneering force in the Asian aviation market for more than 20 years, making air travel accessible to millions of customers across Southeast Asia.

We are incredibly proud of the Jetstar Asia team and the work they have done to deliver low fares, strong operational performance and exceptional customer service.

This is a very tough day for them. Despite their best efforts, we have seen some of Jetstar Asia's supplier costs increase by up to 200%, which has materially changed its cost base.

With today's intraday boost factored in, the Qantas share price is up 73% since this time last year.