"The other two were jumping as a tandem pair: a highly experienced instructor and a customer," it said.
Skydive Australia confirmed it had suspended operations at Mission Beach while investigations into the incident continued.
"The company extends its deepest sympathies and heartfelt condolences to the individuals and families involved and the broader skydiving community," it said.
An eyewitness told The Cairns Post newspaper he could do nothing as he watched the incident unfold.
"You could see one chute was tangled and it wasn't opening," said the unnamed man.
"I was just watching him in free fall until he went behind the trees, and that was the last I saw.
"It wasn't good to watch. I had my heart in my mouth."
Cassowary Coast Regional Council mayor John Kremastos told AAP the region had been rocked by the news of the fatalities.
"We're very saddened and grieved by what's happened," he said.
"Our hearts and prayers and thoughts go out to the families."
Mission Beach, between Cairns and Townsville, is a regular skydiving spot for tourists.
The Australian Parachute Federation is also reportedly sending representatives north from Brisbane to investigate.
- AAP