Air New Zealand has cancelled Bali flights today due to an erupting volcano at Mount Agung.

The airline says flight NZ245 from Auckland to Bali, due to depart today, has been cancelled as a result of volcanic activity. The return flight NZ246 from Denpasar to Auckland has also been cancelled.

A spokesman for Emirates, which has this month started daily services there, said last night's flight arrived as scheduled and he would check on the outbound flight from Auckland.

Flight Centre said that Ngurah Rai International Airport in Denpasar remains open however a number of airlines flying from Australia to Bali had also opted to cancel or delay flights overnight and today.

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Ash cloud Mount Agung produces can pose a threat to aircraft flying in the area.

Volcanic ash is hard and abrasive, and can damage propellers and turbo compressor blades, as well as scratching cockpit windows.

''At Flight Centre we are closely monitoring the situation and working with our customers due to travel to the region to provide support and advice. For any customers with questions we advise they contact their store or travel expert as soon as possible to get the latest advice on their individual itineraries and travel insurance policies,'' said Sue Matson, Flight Centre's general manager, retail.

The agent said it was important customers did not assume all flights would be cancelled.

''There have been a number of events world-wide recently, such as earthquakes, tsunamis and volcanoes, which highlights the importance of travel insurance and so we recommend anyone soon to travel overseas to make sure they have sufficient cover for their trip,'' she said

It was a timely reminder that insurance should be bought at the time of booking.

The volcano's alert level remains moderate. A 4km exclusion area remains around Mount Agung.