FLIGHTS out of Bali are set to resume with the airport reopening at 3pm local time.

Thousands of Australians have had their travel plans thrown into chaos due to the closure of the Denpasar Airport, which analysts predict was costing the tourist island more than $AU25 million a day.

Authorities had closed the airport for another 24 hours due to the safety risk caused by plumes of ash billowing from the volcano, however it is being reported the airline is set to reopen at 3pm local time (5pm ADT). The volcano aviation alert was recently dropped from red to orange this afternoon.