For those planning a trip to Mexico, this means that they will not be covered by their travel insurance should they choose to go ahead.
Here, we look at what the FCO announcement means for those due to travel to the country - as well as those already in Mexico.
I am supposed to go to Mexico soon. Can I expect a refund or offer of an alternative destination from my tour operator?
Both Thomson and First Choice Holidays have cancelled flights to Cancun in Mexico from Gatwick and Manchester airports, while rival Thomas Cook has cancelled flights from Gatwick, Manchester and Glasgow for the next seven days.
They are currently offering people due to depart to Mexico the option of selecting a different destination or alternative date up to the same value already booked, or of cancelling their holiday and receiving a full refund without incurring any extra charge.
However, the options available will depend on the company you are travelling with, so the Association of British Travel Agents is advising customers who have booked package holidays to contact their tour operator for the latest information regarding their holiday itineraries.
Customers who have booked independently should also contact the company they booked through and/or their airline.
British Airways, for example, is still operating flights to Mexico City, but is offering customers travelling between now and May 5 the chance to change their travel dates or destination without incurring an administration fee.
I am already on holiday in Mexico. What are my options?
There are estimated to be around 10,000 Britons holidaying in Mexico at present - many of whom are on package deals.
Some large tour operators such as Thomson have already begun to repatriate holidaymakers from Mexican resorts, while other such as Thomas Cook are offering to fly holidaymakers home should they request to return early.
The best advice is therefore to contact your tour operator or airline to find out what measures they are taking to transport worried customers home.
Will my travel insurance cover me if I cancel my holiday?
Travellers due to fly out to Mexico on holiday will now be entitled to claim refunds due to the new advice from the FCO.
The Association of British Insurers advises anyone considering cancelling pre-booked travel arrangements to talk to their tour operator/travel agent/airline to see if alternative arrangements can be made.
Anyone choosing to travel to an alternative destination should be able to easily transfer their policy to cover them there.
What about if I get ill? Will my travel policy cover me then?
Most travel insurance policies cover medical expenses incurred while overseas, although there is generally a limit on how much they will pay out.
The minimum medical protection recommended for Europe is £1m, and £2m for the US where hospital costs are higher. However, many quality policies automatically cover up to £5m.
Anyone who falls ill with swine flu having travelled to Mexico before the FCO's latest announcement should therefore be able to make a claim for medical bills.
If, however, you choose to ignore the FCO's advice and travel to Mexico despite the warnings, you are likely to find that your policy will become null and void - leaving you liable for any treatment or repatriation costs.
Trips to neighbouring countries such as the US are currently still being advised by the FCO, meaning that medical expenses incurred as a result of swine flu would still be covered by your insurer.
However, it is worth keeping an eye out in case the advice changes in the future. You can find the latest FCO travel advice at fco.gov.uk/travel.
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