Australia's Jetstar is preparing to file legal action against the Sydney Airport for its security lapse and causing flight delays and thousands of passengers stranded.

A report on the Sydney Morning Herald said Jetstar will seek financial damages for the said flight disruption and discussions will be pursued with the management of the Sydney Airport.

The delays happened yesterday after the security in terminal 2 failed to work and had to re-check 16 passengers prompting a re-screening of all travellers including those already aboard planes at around 3:15 PM.

The security breach cancelled 29 flights were cancelled, 15 of which were Jetstar's.

Jetstar said 2000 of its passengers were stranded overnight but they would all get to their destinations today.

"We have put on six ad hoc services today as well as putting stranded passengers on Qantas flights and alternative Jetstar flights," the spokesman said on SMH adding that all passengers will go to their destination today.

A Qantas spokesman today said that only a couple of its regional flights had been affected by the incident and all planes were running on time.

Sydney Airport has assured that everything was back to normal and extra flights had been put on to clear the stranded passengers.

"The terminal is operating as normal and the airlines have put on extra flights this morning for the stranded passengers," a Sydney Airport spokesman said today.