The budget carrier said six of its services between Australia and the Indonesian island were being axed a day after the disruption began with the cancellation of several flights.
About 700 passengers were affected by the cancellations today, and a similar number were affected yesterday, the Australian Broadcasting Corporation reported.
Tigerair said the chaos was caused by the Indonesian government's decision to "impose new administrative requirements for the operation of its flights between Bali and Australia".
It said Tigerair should not have been selling tickets within Indonesia for its chartered flights. Only Virgin Australia, Tigerair Australia's parent company, was authorised to sell the tickets, it said.
"All foreign airlines must comply with our regulations," ministry spokesman Agoes Soebagio said in a statement, adding all Tigerair Australia flights would be cancelled until requirements had been fulfilled.
Tigerair said Virgin Australia was sending two flights to Bali to bring affected customers back.
Bali, a pocket of ancient Hindu culture in Muslim-majority Indonesia, attracts millions of foreign tourists every year to its palm-fringed beaches and is a particular favourite with visitors from neighbouring Australia.
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