Iceland's first volcanic eruption in six years forced 600 people to flee their homes on Sunday and brought a halt to all flights into and out of the Nordic island nation.

Smoke could be seen rising from behind Eyjafjallajoekull glacier and volcanic ash filled the sky after the eruption -- foretold by a week of localised earthquakes -- began after midnight (0000 GMT) on Saturday.

No casualties were reported in the remotely populated area, about 125 kilometres (75 miles) east of Iceland's capital Reykjavik.

But the risk of floods posed by melting glacial ice prompted the authorities to declare a state of emergency and to immediately evacuate the area.

"We did not have time to be afraid and everyone was so calm and stoical," farmer Dorhildur Bjarnadottir, 51, told AFP in Hvolsvoellur, a small town of 800 near the glacier where some of the evacuees took refuge."The worst part in all of this is to leave our animals behind at home," her husband added.

Three Icelandic airports -- including the main international airport in Reykjavik -- were closed, and all air traffic to and from Iceland had been suspended by mid-day on Sunday.

"Around 600 people have been evacuated and the area is still closed," local police chief Kjartan Thorkelsson told AFP.