The Royal Gibraltar Police tweeted at 1346 local time that the Frontier (Gibraltar–Spain border) and sundial was closed because of a suspicious package discovered at the airport. They also told residents to "please stay away from the area".
Easyjet now says that a technical fault of the aircraft had caused the smoke smell which was mistaken, but discovered, by the baggage handlers.
Passengers say their luggage had to be re-screened before being loaded back onto the aircraft.