Exeter-based airline Flybe is reportedly at risk of collapse, less than a year after being bailed out by a Virgin Atlantic-led consortium.
The news comes just days after the firm announced it would "potentially" be making redundancies at its Devon headquarters.
Sky News reports that the airline, which handles over half of Britain's domestic flights outside London and flies from Cornwall's Newquay airport, has been trying to secure additional financing amid mounting losses.
The airline operates more UK domestic flights than any other, and 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.
Some 2,000 jobs are said to be at risk.
A Flybe spokeswoman said: