Jetstar will increase flights between Hobart and Sydney to offer a twice daily service.
Jetstar now operates 11 Sydney-Hobart flights weekly. The increase to 14 return flights means an extra 1062 seats.
The airline said the added flights, due to start October 26, were in response to greater demand from NSW travellers.
Jetstar spokesman Simon Westaway said demand for Tasmania was extremely strong.
"Tasmania has been performing ahead of expectations for us," he said.
Mr Westaway said the airline expanded its Hobart-Melbourne flights in March, growing from four daily services to five.
He said there was still potential to further increase flights on that route.
The Tourism Industry Council said the Jetstar announcement showed confidence in Tasmania's tourism industry.
Chief executive Daniel Hanna said the availability of more budget seats made it easier for people to travel to Tasmania.
"Given the difficulties being faced by airlines and cuts to services around the world, this is fantastic news and is an expression of confidence by Jetstar in the Tasmanian market," Mr Hanna said
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