Flybe has reportedly been locked in emergency rescue negotiations overnight.
ITV and a number of national news outlets have reported the airline, which was bought by a Virgin Atlantic, Stobart Group and Cyrus Capital Partners consortium last year, is seeking additional funding to save itself.
Sources told ITV that EY is on standby to take over the administration of the Flybe Group if talks are unsuccessful.
The government is reportedly aware of the airline’s problems and is in discussions over whether it should intervene.
There would reportedly be 2,000 jobs on the line, with the carrier operating from Belfast, Birmingham, Manchester and Southampton.
On Sunday night (12 January), the airline tweeted: "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 Virgin Atlantic-led consortium, which bought Flybe last year, agreed a £2.8 million deal in March, and was due to rebrand the company as Connect Airways.
Cyrus Capital owns the largest share of Connect, which is led by chief executive Mark Anderson.
This comes after the company said it was examining potential redundancies.