The 3031-metre high volcano's last deadly eruptions occurred in 1963 and 1964, during which about 1200 people were killed.
This is not the first time that the airport has been closed due to Mount Agung and this time, 48 flights had been cancelled, affecting 8,334 passengers, including 38 worldwide flights and 10 domestic flights.
Mount Agung spews volcanic ash into the air.
Two other airports in East Java were also ordered closed on Friday, according to DPA news agency.
Qantas turned back two Bali-bound flights departing from Melbourne and Sydney, and delayed two more due to depart Denpasar.
"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, said Sue Matson, Flight Centre's general manager, retail".More news: Governor, Finance chair don't support internet sales tax
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Almost 450 flights were cancelled on Friday, affecting some 75,000 people, as the Mount Agung volcano gushed a 2500m column of ash and smoke for a second day.
It was a timely reminder that insurance should be bought at the time of booking.
Air Asia has cancelled three flights between Perth and Bali, and Jetstar 10 to and from Australia.
DENPASAR, Indonesia The Indonesian tourist island of Bali closed its worldwide airport Friday, stranding thousands of travelers, as the Mount Agung volcano gushed a 2,500-meter (8,200-feet) column of ash and smoke.
Tens of thousands of locals fled to evacuation centres after last year's eruption.
Indonesia is situated on the Pacific "Ring of Fire", a vast zone of geological instability where the collision of tectonic plates causes frequent quakes and major volcanic activity. Government seismologists monitor more than 120 active volcanoes.