The eruption is unlikely to have inflicted significant financial pain on Air NZ, analysts say.

The impact of Iceland's erupting volcano should make us ponder the very nature of how we have organised the way we live now, writes Hamish McRae.

NZ passengers trying to fly to Europe are expected to be stranded here for at least two weeks.

Air traffic could return to half its normal level in Europe if clouds dissipate overnight, EU officials have said.

Air NZ has started flying passengers home from stopovers if they are unwilling or unable to wait for ash to clear over Europe.

More than 2000 passengers are stuck in NZ as airports remain closed until at least 7am tomorrow.

UK airspace will remain closed until tomorrow morning, a shutdown which is costing the air industry an estimated $282 million a day.

The Governor-General has been forced to cancel plans to attend the late Polish President's funeral.

Enhanced engine technology has magnified the risk of fatal damage to aircraft flying into volcanic ash clouds, writes Mathew Dearnaley.

Kiwis travelling to the London Book Fair next week have been scattered and stranded all over the globe with volcanic ash continuing to disrupt flights across Europe.

Two New Zealand aid workers are safe and well following this morning's earthquake in Indonesia.