The country's biggest regional airline Flybe is reportedly on the brink of administration, just months after Thomas Cook's collapse.
The carrier is said to be "locked in survival talks" to try to secure additional funding - with accountancy firm EY on standby should it slide into administration.
Flybe first put itself up for sale late in 2018, warning that it was fast running out of cash.
The troubled carrier was rescued in March 2019 by a consortium comprising of Virgin Atlantic, Stobart Group and US hedge fund, Cyrus Capital.
The three, known as Connect Airways, bought the airline for a nominal price of £2.8miliion and spoke of plans to "grow Flybe’s regional network" - however rescue talks are now back in action.
When asked for a comment, the airline said it's continuing to operate as normal today - Monday, January 13.
A Virgin Atlantic spokesperson said: "We are not commenting on speculation".
Flybe, which employs more than 2,000 people, is based in Exeter and operates almost 200 routes in the UK and Europe.
It manages the majority of UK domestic flights, with frequent links between Scottish and English airports, and more than a dozen routes connecting George Best Belfast City with airports in England, Wales and Scotland.
Flybe also serves near-European cities such as Amsterdam, Dusseldorf and Paris at a dozen UK airports, including Aberdeen, Belfast City, Birmingham, Glasgow, Manchester and Southampton.
I have a Flybe flight booked - should I be worried?
Thousands of people who already have tickets booked with Flybe will be wondering what the future holds after today's news - with many no doubt worried about their upcoming bookings.
However the airline says people should not panic.
A spokesperson for Flybe said the airline is continuing to trade as normal. It said that passengers should continue to plan to "travel as planned".
Flybe added: "We don’t comment on rumour or speculation."
Rory Boland, at Which? Travel editor, said: "The speculation that Flybe might be the next airline to go under will be a huge concern for its customers and for those who regularly use airports where the airline is the main carrier.
"While flights will be going ahead as normal for the time being, this is a stark reminder for passengers to ensure they have protections such as airline failure insurance and to book flights with a credit card so that they can reclaim the cost with their card issuer should an airline go bust."
You can see our guide on how to buy the right travel insurance, here.
Will I get my money back if Flybe goes bust?
This will depend on whether your booking was Atol protected, or not.
Atol protection means that you are guaranteed a refund if a company collapses, and you won't be left stranded abroad.
But it only applies under certain circumstances.
If you booked with a travel agent, the scheme applies if you booked a package holiday that involved a flight.
If you booked directly with the airline, the rules are slightly different. If you book your flight and then book hotel accommodation through an airline's website, this may not be covered, unless it's a linked travel arrangement .
Which? has a handy guide on how to find out if your holiday is Atol protected, here.
If an airline goes bust before you depart, you need to contact your travel agent to make sure your booking is still in place.
If it is, then your travel arrangements should continue relatively unaffected, although your flight times could change. It’s important to keep all your booking information should there be any problems.
