Qantas and Jetstar lifted a ban on flights to and from Melbourne but services by the two airlines in and out of the southern island of Tasmania, Adelaide and New Zealand were cancelled for the day.
Tiger Airways cancelled services between Adelaide and Melbourne and Perth and Melbourne.
Virgin resumed normal flights to Melbourne, Tasmania and New Zealand with its planes
flying around or under the ash plume. They are also flying in and out of Adelaide, as are international services by Singapore Airlines and Malaysia Airlines.
Air New Zealand's domestic and trans-Tasman flights also continue to operate to schedule.
The eruption of the Puyehue volcano, high in the Andes, has spewed ash that has disrupted air travel on a scale not seen since the volcanic cloud over Iceland paralysed Europe in 2010.
Flights across south America have been hit, with strong winds carrying the ash more than half way around the world, over the southern Atlantic and southern Indian Oceans.
Weather experts warn that the disruption is likely to last at least another day.