Bali's volcano is spewing ash again, causing mayhem for Australian airlines

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The major reason for cancelling the flights during a volcanic eruption is that it can damage engines, clog fuel and can even hamper visibility.

Virgin Australia, Qantas, Jetstar and AirAsia cancelled flights earlier today.

Passengers look at an informtaion board at Bali's worldwide airport, Indonesia on Thursday as airlines cancelled flights due to volcanic eruption from Mount Agung.

The holiday plans of thousands of Aussies have been thrown into chaos, with Bali's Mount Agung volcano forcing the closure of the island's worldwide airport.

The fresh activity threatens to create travel chaos after an Agung eruption in November stranded thousands and pounded Bali's lucrative tourism industry and wider economy.

The Indonesian volcanic agency, VONA, still has Mount Agung on orange color code - one below the top red level - meaning the volcano is exhibiting heightened unrest with an increased likelihood of eruption or an eruption is underway with no or minor ash emission.

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The volcano began belching ash and smoke on Thursday and several airlines canceled inbound and outbound flights scheduled for the evening.

It added that winds could carry the ash southwest toward Bali's global airport and Java, Indonesia's most densely populated island.

Ngurah Rai worldwide airport says all flights are suspended until at least 7pm local time (9pm AEST). However, the alert level for the volcano has not been raised and authorities are still monitoring Mount Agung, which is located in northeastern Bali. It said the situation will be reviewed at midday.

"Safety remains the main reason for the decision to close the airport", disaster management spokesman Sutopo Purwo Nugroho said in a statement.

More than 38,000 local residents were evacuated to shelters and a 12km exclusive zone placed around the volcano, which is 70km from Kuta.

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