flybe. (BE, Exeter) is urgently seeking extra capital to prevent impending collapse and has been scouting the government regarding options to provide emergency funding, Sky News has reported citing unnamed sources.

According to the report, the British regional carrier is facing a cash shortage and EY consultants are on standby to handle any potential entry into administration.

"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," the airline said in a statement.

The airline faced collapse in late 2018 when it was saved at the last-minute by a takeover bid submitted by Connect Airways, a consortium of Virgin Atlantic, Stobart Group, and Cyrus Capital. The transaction was completed in February 2019 with the new owners pledging to inject up to GBP100 million pounds (USD130 million) into the struggling regional airline, which was due to rebrand as Virgin Connect later this year.

However, Connect Airways has reportedly tightened its conditions for injecting the funds into flybe. The airline is no longer publicly traded and has not reported its financial results since the takeover.

According to the ch-aviation fleets advanced module, flybe. operates three ATR72-600s, fifty-four Dash 8-400s, nine E175s, and one E195. The airline plays a significant role in providing connectivity for British regional airports with crew bases at Aberdeen Dyce, Belfast City, Birmingham Int'l, Edinburgh, Exeter, Glasgow Int'l, Isle of Man, Manchester Int'l, and Southampton.