An airline is offering full refunds to passengers who were due to fly to London but now don't want to travel there in light of the weekend's deadly terror attack.

Malaysia Airlines told customers they could be refunded in full if they wished to cancel their flights to London in the days immediately after the attack on London Bridge and nearby Borough Markets that killed at least seven people and injured 48 others.

Malaysia's flagship airline said in a statement it "regrets the sad news" of the attack and that
customers could refund their flights through to today, June 5, or reschedule flights with no penalty or extra payments.

A spokesman for Qantas said there were options available to customers travelling to and from London and urged passengers to contact the Qantas call centre.

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The Department of Foreign Affairs and Trade has not changed its level of advice for the United Kingdom following the attack and said travellers should exercise normal safety procedures.

But travellers bound for London should be aware their travel insurance may not cover their decision to cancel an upcoming trip in light of the terror attack, Travel Insurance Direct's travel expert Phil Sylvester said.

"Clearly people about to travel to the UK will be concerned by what's occurred and weighing up their options: do they go or not?" he said.

"There are some events that, although 'unforeseen', have limited cover under your policy or are not covered at all, and a terrorist attack falls under this.

"We will do everything in our power to assist policyholders involved in this current incident, but going forward, for future visitors, there is no cover for cancellation [of travel plans] or additional expenses due to delay.

"This is because it is impossible for us to estimate the eventual cost of a large scale terror incident, so to keep premiums down for everyone at all other times we exclude such events."

Sylvester said Travel Insurance Direct would cover medical expenses and medical evacuation costs due to injury for policyholders involved directly in the London event.

Affected customers are urged to call their insurer's emergency assistance team right away.