THE Far North's tourism industry is holding its breath as Qantas works out what international services will be cut to offset the crippling impact of rising fuel prices. 

While the region has been treated gently with cuts in domestic services, of greater concern is what will happen to flights from the falling - but still the biggest - international market of Japan.

The domestic cuts announced on Wednesday will come into effect on July 1.

Jetstar, which will lift its number of Brisbane-Cairns flights from 21 a week to 28 from June 1, will reduce that number on July 1 to 24 flights.

TTNQ chief executive Rob Giason said the cutback in peak season was disappointing, but the fact that it was still above what was now being offered was a sign that Cairns is a strong and confident destination.

He said the strength of Cairns domestic market was evidenced by the fact Jetstar was dropping all its Sydney to Whitsunday flights, Adelaide to Sunshine Coast and Brisbane to Hobart routes.

Whitsunday tourism officials have estimated its industry will lose $98 million.

Jetstar spokesman Simon Westaway said the airline had scheduled 32 weekly flights during the June/July school
holidays.

"Cairns is a very important market and Jetstar is committed to looking at capacity on a seasonal basis," Mr Westaway said.

Cairns Ports CEO Neil Quinn said it was to be expected that rising fuel costs would impact on the aviation industry.

"The strength of Cairns and Tropical North Queensland as a tourism destination is underlined by the fact that despite announcing services cuts to other parts of Queensland and Australia, Jetstar are still committed to increasing the number of services into Cairns," he said.

Services on Jetstar’s other domestic Cairns routes and Qantas domestic services into Cairns remain unchanged.

Mr Giason said Qantas was expected to make an announcement about the future of international routes next week.

Cairns was spared from a recent cutting list of Qantas flights from Narita, but cutbacks are feared given the rising fuel price and retirement of less efficient aircraft.

The number of Japanese tourists to Queensland fell by 15 per cent in the 12 months to the end of March, although Cairns performed better than most destinations with a drop of 10 per cent.

"We are conscious of the impact on an already difficult market," Mr Giason said.

"Comparatively, Cairns is doing very well because we have been very aggressive in the market.

"We are a strong destination and are doing everything possible to keep those markets strong."

The rising fuel costs would not have any impact on 12 Korean charter flights scheduled for July and August.

Mr Giason said the twice weekly flights had a capacity of 295 seats each flight and were already 80-90 per cent booked.

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