Bali's Denpensar International Airport is closed for 24 hours following authorities raising the volcano alert to the highest level.
Indonesian authorities are urging people within 10 kilometres of the volcano to leave.
The National Disaster Mitigation Agency said authorities will consider reopening the airport tomorrow after evaluating the situation.
Travellers flying in and out of Bali have been advised to check their travel insurance, in particular the level of cover in the event of a cancellation.
Flying conditions in Bali have worsened due to the ash cloud from the Mount Agung volcano with a number of airlines cancelling all in and outbound flights today.
House of Travel's commercial director Brent Thomas told 1 NEWS it was important travellers are familiar with their travel insurance policy.
'Different policies can vary dramatically," he said.
"It is important for travellers to stay in close contact with their travel agent and airline so they are aware of any last-minute changes to their travel plans."
Ash from the volcano has covered roads, cars and buildings.
Airlines were forced to cancel a number of flights over the weekend and all passengers with travel plans are being asked to check airline websites for updated information.
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