Ash clouds were spreading over the capital city of Buenos Aires, officials said.
The Buenos Aires metropolitan airport halted its operation, while airline companies Aerolineas Argentinas, Austral and LAN Argentina have cancelled all flights "until further notice" for safety reasons.
LAN Argentina told Xinhua 14 of its flights were cancelled Tuesday.
The Puyehue volcano - about 2,240 metres high - is located in the Andes mountains in southern Chile. Its last major eruption was in 1960, following a magnitude-9.5 earthquake.
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