The town of Grindavík, just 10 miles south of Keflavik International Airport, has been evacuated as a precaution.
Yet flights are continuing to arrive and depart as normal. These are the key questions and answers on consumer rights.
I am in Iceland. Will I be able to leave?
Yes, assuming the international airport remains open. So far operations have been normal. There are 14 arrivals and departures planned for Saturday from and to the UK, with no signs of disruption to flights.
You may be keen to leave earlier than booked, in order to guarantee your getaway, but at present you will not be able to switch flights without paying a penalty.
A spokesperson for British Airways told The Independent: “Our flights are operating as planned and we continue to monitor the situation closely.
“We will be in touch with customers directly should the situation change.”
The easyJet statement is very similar: “Our flying schedule is currently operating as normal however we are monitoring the situation closely and should this change we will contact customers directly to advise on their flights.”
But didn’t an Icelandic volcano shut down European aviation for a week?
Yes. Travellers may remember where they were in April 2010, when the Icelandic volcano Eyjafjallajökull erupted. The skies of northern Europe completely closed to passenger aviation for almost a week because of fears that volcanic ash spreading southeast from Iceland could damage aircraft engines and endanger travellers.
So far in 2023, though, ash has not been an issue in the current geological outburst.
What if I am booked on a package holiday?
Foreign Office advice stops well short of advising against travel to Iceland, meaning holiday companies can continue to operate as normal – with no automatic right to cancel.
The Foreign Office…