Brisbane-based regional carrier Jetgo Australia, a new player in the passenger airline industry, was set to commence direct flights between the south-west Queensland town and Sydney on December 1.

But a lack of interest has seen Jetgo abandon the route before any rubber hit a runway.

The company said passengers who had made bookings would receive refunds.

Jetgo, which has a fleet of three 36-seat Brazilian-made Embraer 135 aircraft, has operated since 2012 as a charter service, with a focus on fly in, fly out workers in the resources sector.

In October, it received CASA approval to operate as an airline, with announced inaugural passenger routes to Sydney from Roma and Gladstone.

Jetgo managing director Paul Bredereck said demand for the Roma route had fallen well short of expectations.

"We pulled the pin on it because there's been a marked downturn in the short term out there for a whole bunch of things and we decided it was better to inconvenience a very small number of people now, rather than inconvenience a heap more later," he said.

"Like any business, not everything is going to work out exactly as you want it.

"Yes, it's a disappointment and we invested quite a bit into that route.

"Back when we made the decision to go there, we were flying extensive FIFO charters from Brisbane into Roma and Melbourne to Roma and we had a number of significant customers who were very buoyed by the prospect of services.

"… We had a fair bit of confidence the service would be underwritten (by corporate clients), but in the course of the past three weeks, the level of demand has been way less than we anticipated.

"Then last week we were advised by one significant contractor out there that his contracts were being cancelled in the new year."

Mr Bredereck said if the market improved, Jetgo was in a position to immediately step back in to offer the route.

"We've already got the licences and the approvals, so if we get a FIFO company up there who wants to commit to a certain number of seats, we can turn it back on again," he said.

"But it's not going to do anyone any good running an unprofitable airline on a route, because it's only going to end in tears."

Maranoa Mayor Robert Loughnan said it was "very disappointing" for Roma's airport, which had more than 250,000 passenger movements last financial year, largely on the back of the resources sector.

But he said he understood Jetgo's position.

"I've got to say I've been underwhelmed by the number of people wanting to fly that route," Cr Loughnan said.

"There are a couple of people in town – a chef at the local hotel who was keen to go home every fortnight, so he was really looking forward to it.

"But the pub he was working in, the Royal, burnt down last weekend, so he'll no longer be a great advocate for the service anyway.

"…The Roma people would love to go down once a year or something like that, but they're not going to go down every week or every fortnight to make Sydney their second home."

Jetgo's Gladstone-Sydney service, which Mr Bredereck said was selling well, was still on track to take to the air on December 1.

"We've got a lot of options for where we can put these aircraft at the moment – we just got the timing wrong on Roma," Mr Bredereck said.

"But we've got a lot of confidence in Gladstone and some of the other routes we're planning for early next year we've got a lot of confidence in."

The Brisbane-Tamworth route was expected to commence early next year, subject to regulatory approval.