The flight had been scheduled to leave at 5.55pm on Sunday but was repeatedly delayed and finally cancelled.

Melbourne insurance broker Frank Cosaitis was a passenger and said he was appalled with the service he received.

Mr Cosaitis said he was frustrated by the fact that the airline kept promising there would be a flight so passengers were not given the opportunity to catch a flight on another carrier home.

"A couple of us went over and said we're hungry, we're thirsty, we're tired and they offered us a $5 meal voucher," he said.

"You can imagine what you'd get from the airport for $5.

"There must have been a group of about 40 people yelling and screaming and then several police were called.

"Then it was cancelled and there were some people there that couldn't afford to buy another ticket the next day with another carrier.

"We were told at 1am that if we paid for accommodation they would reimburse us but a lot of people didn't have the money to pay for accommodation."

Victorian policeman Michael Olsen was also a passenger.

"I don't think, in my experience, I've seen a group of customers treated so contemptuously," he said.

In a statement Tiger Airways, the airline apologised for the inconvenience the cancellation caused for passengers.

"A Tiger Airways flight from Launceston-Melbourne was cancelled last night due to knock-on effects of extreme weather conditions outside the airline's control," the statement read.

"Tiger Airways apologises to any inconvenienced passengers but the weather conditions affected all carriers this weekend."

The airline put on an extra flight out of Launceston last night.