The groundings affected Jetstar, Qantas and Virgin Australia flights on Tuesday, leaving passengers stranded.
The emergency began on Sunday when Mount Lewotobi Laki-laki volcano erupted, spewing an ash column nine kilometres high.
Mount Lewotobi Laki-Laki has been spewing volcanic ash and other substances since last week. (AP PHOTO)
The event in East Nusa Tenggara province, which is about 500km from Bali, killed nine people and prompted the evacuation of more than 15,000 people close to the crater.
"Due to volcanic ash caused by Mount Lewotobi in Indonesia, it is currently not safe to operate to and from Bali," Jetstar said on Wednesday.
All of its flights to and from Denpasar Airport have been cancelled until 2pm.Â
"We continue to monitor the situation closely and will provide an update on flights scheduled to operate after 1400 AEDT as soon as possible," Jetstar said in a statement.
If the situation improves, Jetstar plans to put on two flights between Australia and Bali.
A Qantas flight is due to depart Sydney International Airport around 4.30pm while Virgin still plans to operate a flight out of Sydney at 5.45pm.
On Tuesday, Qantas and Virgin Airlines cancelled up to 10 journeys in total, according to their websites.
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