South West-based airline Flybe is said to be in talks to avoid going into administration.
More than 2,000 jobs are said to be at risk as it tries to secure additional funding.
The company, which is based at Exeter, has issued a statement to say customers should continue to travel as planned.
They also say they "don't comment on rumour or speculation."
The airline handles over half of Britain's domestic flights outside London.
There's reports accountancy firm EY has been put on standby to handle any administration.
Flybe has around 75 aircraft and serves more than 80 airports across the UK and Europe.
Flybe continues to provide great service and connectivity for our customers while ensuring they can continue to travel as planned. We don’t comment on rumour or speculation.— Flybe ✈ (@flybe) January 12, 2020