Low-cost airline Tigerair has suspended all flights between Australia and Bali, following what the company says is a decision by the Indonesian Government to impose new administrative requirements.

In a statement, the airline said Wednesday's flights had been cancelled along with all flights on Thursday and on Friday morning.

It said in the event of further cancellations, customers would be contacted by the airline.

"The remaining five flights to and from Bali on 13 January are currently under review," the airline said.

"Virgin Australia plans to operate two flights from Bali tomorrow in order to bring as many affected customers back to Australia as possible.

"Customers currently in Australia who are affected by the cancellation of tomorrow's Tigerair services will be offered a full refund.

"Tigerair Australia sincerely apologises for the inconvenience caused by these cancellations."

A spokeswoman for the airline said up until Tuesday, Tigerair had complied with all administrative regulations.

However, she refused to say what exactly the changes were, other than they were not safety-related.

She said the airline was in communication with the Indonesian Government.

Tigerair says it is contacting affected passengers. ( ABC News: Tom Wildie )

The airline estimates around 700 people have been affected by the cancellations so far, and a similar number will be disrupted on Thursday.

"Tigerair is working with the relevant Indonesian authorities to meet the new requirements and is hopeful of having flights up and running again as soon as possible," an earlier statement from the airline said.

"Tigerair is contacting passengers affected by the cancellations to provide re-accommodation options to ensure customers are supported during this disruption."

'It's horrible': Perth woman describes airport chaos

Perth woman Sophie Kealley was supposed to return to Perth via Tigerair with her boyfriend on Wednesday and is stranded in Bali.

Sophie Kealley says passengers have had no information about when they will be able to fly. ( Supplied: Sophie Kealley )

"We went to obviously check into our flight and they hadn't even sent us an SMS ... we found out by some lady in the line finding out on Facebook," she said.

Ms Kealley said it was eventually announced the flight had been cancelled, and they were given a letter and a hotel room for the night.

A letter from Tigerair was given to passengers in Bali after flights were cancelled. ( Supplied: Sophie Kealley )

"We're back at the airport now to try and find out because there's no way for them to contact us to let us know when the new flights will be available," she said.

"We tried to get on the next Jetstar flight but they boarded the plane and then everyone was evacuated off the plane anyway.

"There's literally no communication from anyone.

"It's horrible — there's people that are refusing to go to the hotel until they get another flight so they're literally lying down under the chairs, on the chairs, there's kids lying on suitcases because they only gave out 45 rooms and there's 170 passengers.

"We're just going to wait it out and wait for the next flight."

Tigerair is asking passengers to not go to the airport, but wait for the airline to contact them.

It also said the website was the best way to get information as "Tigerair expects a higher than usual volume of calls to the call centre as a consequence".

Jetstar said it was working to assist stranded Tigerair passengers in Bali and would offer discounted fares to those booked on cancelled flights.