Flybe is said to be locked in survival talks, with the airline under threat of collapse.
The company, Europe's largest regional airline, was bailed out by a Virgin Atlantic-led consortium less than a year ago, but is reportedly in talks over potential emergency financing after suffering rising losses, Sky News reported.
It 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.
It comes days after the Exeter-based airline announced it could potentially make redundancies.
Flybe operates several domestic flights in the UK, including between Glasgow and Manchester. It also flies 8.5 million passengers each year to 170 European destinations.
Around 2,000 jobs are said to be at risk.
A Flybe spokeswoman 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."
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