The type of wood used for making a flute is entirely up to the individual. 

I prefer using Aromatic and Western Red Cedar.  It has good resonance qualities and is fairly easy to work with.  The native American Indian preferred Cedar to other woods, because of its spiritual value to them.  Cedar trees grow with a very shallow root system, making an individual tree weak and vulnerable.  But Cedars grow in large groups, and the root systems intertwine with each other sharing their strength with one another, thus making the group strong.

When deciding which wood you want your flute made of, keep in mind that harder woods are more difficult to work and cost more.  Softer wood flutes have a rich mellow sound, while harder woods give a flute a crisp brighter sound.