Budget Airline AirAsia Suspends Popular Cairns-Bali Route, Leaving Travellers Stranded
August 20, 2025 — Budget carrier Indonesia AirAsia has abruptly suspended its flights between Cairns, Australia, and Bali, Indonesia, effective from September 19. The sudden cancellation has left many travellers stranded and frustrated, intensifying calls for stronger consumer protections within Australia’s aviation sector.
Sudden Route Cancellation Catches Passengers Off Guard
Passengers flying the popular tourist corridor were notified this week via email and text messages that the Cairns-Denpasar route would be discontinued as part of an airline "network optimisation initiative." Despite being a well-used route since its launch about a year ago, the airline cited an analysis of demand trends and route performance in its decision.
Queensland residents Sandy Henny and Ned Kelly, who had booked flights for a birthday trip to Bali in November, expressed their disappointment and concern. "We got an email saying our flights are cancelled. No real explanation, just that they’re optimising their network," Henny said. The couple has yet to receive a refund and criticized the airline’s lack of empathy.
Many travellers affected by the suspension have taken to social media, sharing complaints about difficulties in rebooking flights and securing refunds. Although return flights will continue until next month, some will be forced to return via alternative airlines, complicating holiday plans.
Impact on Tourism and Local Operators
The Cairns-Bali link, introduced by Indonesia AirAsia just last year, was welcomed by tourism operators in Far North Queensland. The direct connection was seen as vital for tapping into a key holiday market from Indonesia.
AirAsia has meanwhile opened a new direct service between Adelaide and Bali as part of its route adjustments.
Airline Response and Expert Insight
AirAsia Indonesia CEO Achmad Sadikin Abdurachman stated that the decision to suspend flights follows “a thorough analysis of demand trends and route performance,” noting the company’s intent to concentrate on more sustainable, higher-demand routes. He confirmed that affected travellers have been offered full refunds, credits, or options to change to earlier travel dates.
However, aviation expert Justin Wastnage, adjunct fellow at Griffith University’s Institute of Tourism, highlighted that such abrupt cancellations are common within the low-cost carrier business model. “Budget airlines ruthlessly and quickly cut routes that are not profitable,” he said, adding that Australian travellers face greater risks due to the absence of automatic compensation schemes as found in regions like Europe.
Wastnage emphasized that low-cost carriers often do not provide the same customer protections as major airlines. While fares may appear inexpensive initially, additional costs and limited recourse in event of cancellations leave passengers vulnerable.
Consumer Protection Concerns in Australia’s Aviation Sector
Australia currently lacks specific laws mandating compensation or refunds for cancelled flights. The federal government has announced plans to implement an independent Aviation Industry Ombuds Scheme and a Charter of Customer Rights, aiming to establish national standards for fair treatment in air travel. This scheme is expected to commence next year.
Meanwhile, the Coalition’s Airline Passenger Protections (Pay on Delay) Bill proposes to introduce Australian regulations similar to Europe’s, requiring airlines to provide refunds or compensation for cancellations and significant delays.
Opposition to such protections remains. At a Senate committee earlier this year, Qantas Domestic CEO Markus Svensson cautioned that compensation schemes could lead to increased fares, negatively impact low-cost carriers, and jeopardize economically marginal routes, especially in regional areas. However, experts like Wastnage argue the European model has been effective in reducing cancellations and delays by incentivising airlines to consider compensation costs.
Travellers Left in the Lurch
As the Cairns-Bali route shutdown takes effect, many travellers face uncertainty regarding their existing bookings and holiday plans. The incident has reignited debates over the adequacy of consumer safeguards in the aviation industry, with calls for more robust Australian protections to prevent similar disruptions in the future.
For now, passengers are advised to check their flight status and contact airlines directly regarding refunds or alternatives.
This article reflects developments as of August 20, 2025.
Add a comment