All flights in and out of the Gold Coast have been suspended until further notice, Australia's major airlines have reported.
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However, flights could resume if the weather improves this afternoon.
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Virgin Blue spokesman Luke O'Donnell said that "all flights up until 2pm have been cancelled and we're monitoring the situation for flights post that time. We have five flights cancelled out of Melbourne today to Brisbane, Gold Coast and Mackay.
"We're asking our passengers to keep focused on our alerts page, which is being updated as soon as we get a cancellation through."
Jetstar spokeswoman Simone Pregellio said 12 one-way flights and six return flights had been cancelled from Coolangatta airport and the Gold Coast but flights could resume this afternoon if the weather cleared up. "We don't want to say we've cancelled flights for the rest of the day because that's probably not the case."
Qantas spokeswoman Amanda Bolger said the airline's three scheduled flights in and out of the Gold Coast had been cancelled. Flights to airports in northern Queensland were also suffering significant delays, she said. "There's delays of two hours in north Queensland because of delays caused by the Telstra outage," she said.