Four men and one woman have perished in a fiery plane crash at Caboolture, north of Brisbane.

A male pilot, two skydiving instructors and two skydiving customers died when the Cessna 206 plummeted to the ground shortly after taking off at 11.30am on Saturday and burst into flames.

Family members witnessed the devastating scenes unfold from the ground, Moreton police region Superintendent Michael Brady said.

"It's a tragedy for all people involved, particularly loved ones and family and of course people on scene," he said.