Strategic Airlines will pull out of the Townsville market in north Queensland by the end of the year.

The Brisbane-based airline will drop its Townsville-to-Brisbane route by September and finish its Townsville-to-Bali service by October 1.

The company is also dropping its Perth-to-Bali run.

Townsville Enterprise Limited (TEL) says Strategic Airlines' decision to pull out of the city should not affect Townsville's reputation as a destination.

TEL spokesman John Bearne says the city has met its obligations in a difficult airline market.

To have that as a stand-alone destination and to fill that plane of 300 and whatever size plane it is is a big call, he said.

Now to fill half a plane, which effectively is what we've been asked to do under the Strategic plan, we've done that right.

We've done it, except that the other aspects of the operation just haven't fulfilled expectation.

Mr Bearne says TEL has been working with Townsville airport to attract another airline to fly to Asia.

There's a demand for an Asian link now whether that's Denpasar, Bali, whether that be Kuala Lumpur or some other Asian destination, he said.

It gets you into Asia with a whole host of other opportunities within a number of that few hours.