Flybe is reportedly on the brink of collapse putting 2,000 jobs at risk.
The airline, which runs several routes out of Newcastle International Airport, has struggled partially due to the impact the coronavirus has had on bookings.
It has sought a £100m Government intervention. However the BBC is reporting that is unlikely to happen.
It could mean the airline, which operates almost half of Britain's domestic flights, fold within days.
Currently Flybe runs services from the North East to Exeter, Humberside, Aberdeen, London and Southampton.
Hundreds of Newcastle United fans are expected to fly with Flybe to Southamption this weekend for the Premier League clash between the two sides on Saturday.
Bosses had sought the huge loan in order to bridge the period between the airline industry's notoriously lean winter months and the busier summer period.
However the outbreak of the virus, coupled with the Government not cutting the airline passenger duty tax which has hit domestic airlines hard, is thought to have played a big part in the firm's struggle.
The £13 per passenger tax on short haul flights is levied on every passenger leaving British airport
It means domestic routes pay the tax twice.
Flybe wanted it halved on internal flights, an option the Government had agreed to explore.
However that - as well as the loan - are reportedly no longer options, casting serious doubts over the firm's long-term future.
Last year, Thomas Cook collapsed amid a mountain of debt. On that occasion, the Government also refused to bail it out.
