QANTAS and its subsidiary Jetstar have cancelled all flights in and out of New Zealand on Friday due to the ash cloud still lingering from a Chilean volcano.

Both airlines said all their trans-Tasman flights would be out of service for the day.

Jetstar also grounded its domestic flights in New Zealand.

It comes as Jetstar CEO Bruce Buchanan told AAP the flight disruptions had cost his airline $10 million, while parent company Qantas had lost some $11 million in revenue and costs.

Virgin Australia also cancelled its flights between Australia and New Zealand on Friday on Saturday.

But Air New Zealand and Tiger Airways said their services were continuing as normal.

The airlines have already resumed flights on the Australian mainland after planes were grounded on Monday and Tuesday, causing chaos for tens of thousands of travellers.

   

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