Mount Agung was spewing smoke up to 1500 meters above its summit, two times higher than on Tuesday, when the smoke has forced the exodus of the people living near the mountain.
It is the second major emission from the Indonesian island's volcano this week, and flights have been disrupted.
This is the highest aviation warning when a volcanic eruption is underway with a significant amount of ash in the atmosphere.
Authorities have begun distributing masks in some areas as ash falls.
Bali is main tourist destination of Indonesia with a monthly flow of some 200,000 foreign tourists, according to official data. Last night, twenty flights were cancelled, most of m from Australia, and this Sunday low-priced airline AirAsia has cancelled anor 32 flights to and from Indonesian islands of Bali and Lombok.
Even if visibility is clear, volcanic ash can damage an airplane's engine.
Travellers to and from the region are being urged to contact their airline or travel agent to find out the status of their flight.
YOUTUBEMount Agung emitted a thick plume of smoke reaching 4,000m
The information director of Indonesia's Disaster Mitigation Agency tweeted that volcanic ash rain had fallen on the Lombok city of Mataram.
Away from the airport, closer to the volcano, there are no new evacuations and so far no plans to extend an evacuation zone that reaches up to 7.5 kilometres from the crater. Officials said that magma has now reached its surface. Around 25,000 people have been evacuated from the "danger zone" on the slopes of Agung to hundreds of refuge shelters.
Indonesia is located on the "ring of fire" in the Pacific, where the collision of tectonic plates causes frequent earthquakes and a major volcanic activity.
It is home to more than 130 active volcanoes.
The Balinese volcano erupted in 1963 killing more than 1,000 people.
Saturday will bring mostly sunny and seasonably warmer conditions with highs topping out in the lower to possibly mid-70s. As a result, temperatures dropped from morning highs in the low to mid 50s and fell into the 40s this afternoon .
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