Indonesian officials are carrying body bags to prepare for the worst scenario as search officials confirm the latest sighting of objects is debris of the missing AirAsia flight QZ8501.

Body bags are being transported to Pangkalan Bun, as relatives of passengers gathered at the airport, broke down upon hearing the news of the plane's wreckage being found.

There were 162 people – 155 passengers and seven crew members - on board the Airbus A320-200 passenger aircraft when it went missing.

On the third day of the multi-national search, the teams spotted various objects in the shallow Indonesian waters along with some bloated corpses.

A team of searchers are also said to have found the corpses on Borneo island. The bodies, Associated Press reports citing an Indonesian official, are swollen but intact.

"It has been confirmed that it is debris from the aircraft bearing red and white colours. The recovery process will now be centred in the debris location in coordination with Basarnas [National Search and Rescue Agency]," said Indonesia's transport ministry's acting director general Djoko Murjatmodjo, according to Jakarta Post.

Ships laden with divers are also being deployed at the scene where the remains of the plane were detected.