Europe's largest domestic airline carrier Flybe is at risk of collapse, putting 2,000 jobs at risk.
It comes after Sky News reported that it is in talks over potential emergency financing after suffering rising losses.
Sky reported that Flybe has been holding talks with the Department for Business, Energy and Industrial Strategy and the Department for Transport (DfT) on whether the government could provide or facilitate any emergency financing to the company.
A Flybe spokesperson said: "Flybe continues to focus on providing great service and connectivity for our customers, to ensure that they can continue to travel as planned.
"We don't comment on rumour or speculation."
Spokesmen for the two Government departments issued the same statement, saying: "We do not comment on speculation or the financial affairs of private companies."
Flybe flies 8.5 million passengers each year to 170 European destinations and operates more UK domestic flights than any other airline.
The Exeter-based firm operates a domestic flight from here in Bristol to Jersey.
Last February, the airline was bought by a consortium led by Virgin Atlantic following poor financial results.
Connect Airways, which consists of Virgin Atlantic, Stobart Air and Cyrus Capital, paid £2.2 million for Flybe's assets and operations.
Flybe completed the sale of its assets to the group in the deal worth only 1p per share.
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