Flybe is running out of cash and will not survive until the end of the month without help, ITV is reporting .
The airline has told the Government it has has been hit by slump in bookings following the COVID-19 outbreak.
FlyBe added it needs to know if it will get the £100million loan it has asked for “in the coming days” to keep in the air.
The loan was put on the table a few months ago as part of plans to keep the airline operating, but no decision has been made so far.
The FT is reporting sources blaming the Government reshuffle for slowing discussions, but added that a decision was likely in the next few days.
Responding to the rumours, the Prime Minister's official spokesman said: "We're firmly committed to promoting and safeguarding regional growth."
Flybe told the Government that the situation is now “urgent”.
A source close to the airline told ITV: “The impact of Covid 19 has made a difficult situation worse."
Flybe has 2500 employees and carries 8 million passengers a year.
Earlier this week Flybe customers were told to keep checking the airline's travel advice in relation to the ongoing spread of coronavirus.
The virus, which first emerged in China, has now been recorded in more than 50 countries, that led to some carriers cutting down on flights or implementing other measures to try and limit the virus' spread.
"Flybe is continually reviewing the ever-changing coronavirus situation as the health and wellbeing of our passengers and crew is our priority at all times," said a Flybe spokesperson.
