A regional airline has temporarily cut some Tasmanian services as a result of rising fuel costs. 

Sharp Airlines said the price of aviation turbine fuel had increased by more than $1 per litre in 12 months, 40 cents of which came in the past two months.

Managing director Malcolm Sharp said the carrier had opted to reduce flights rather than passing the cost on to travellers.

"For our customers, we are trying to find a way that we can make it at least less painful than it is," he said.

"The easiest thing to do would be to put prices up, but we think that would have an adverse impact on demand.

The airline said it would suspend its Saturday services from Launceston and Burnie (Wynyard) to King and Flinders islands from the end of July until the middle of September.

The Essendon to King Island service on Wednesday mornings have also been scheduled to cease until demand increases.

Passengers who have already booked have been offered alternative flights.

The airline said all other services from Hobart, Launceston, Burnie and Essendon to and from the islands would be retained.

'It is what it is'

Mr Sharp said he did not expect the change to have a big impact on travellers.

"By taking out one service a week, those passengers will still be able to travel on a Friday or a Sunday," he said.

"So not only will we still pick up the revenue, we don't have the expenditure.

Aviation tourism company Par Avion has also been impacted by cost increases.

Managing director Shannon Wells said services had not been cancelled because the airline operated under a different model to most others. 

"We're not reducing services but as a consequence we have been increasing the prices of some trips," Mr Wells said.

"Because we're mainly an on-demand service, we haven't had to reduce services — but of course the price has gone up, which makes it less attractive.

"It's not only fuel; wages and insurance have also gone up, so it's a tricky game, but it is what it is.

"What I am anxious about is the COVID stuff. I'm worried we'll face a skills shortage again because of quarantine … I don't think it's over."

Costs have kept soaring

Earlier this year, a fuel surcharge was added to the cost of Sharp Airlines tickets but the cost for the business has continued to rise.

Mr Sharp said the war in Ukraine was impacting fuel supply, but he hoped the worst was over.

"There are a number of reasons and none of them we can control. We have just got to live with it," he said. 

Other airlines across the country, including Qantas, have also taken similar steps to Sharp, by cutting flights, rather than pushing on costs.

"These reductions, combined with robust international and domestic travel demand, are expected to help substantially recover the elevated cost of fuel," Qantas said in an update to the stockmarket.

"The customer impacts from these schedule changes are expected to be minimal."