FLYBE, the principal airline at Southampton Airport, is facing a fresh risk of collapse after suffering a new blow from the outbreak of coronavirus.

Sources told the Financial Times that the company only has enough resources to survive "until the end of this month".

The budget airline was saved from collapse earlier this year but has failed to secure a £100million loan.

It has been hit by a slump in bookings since the outbreak of the coronavirus.

As part of the January rescue deal, Flybe agreed an arrangement to defer tax payments of "less than £10million" with HM Revenue and Customs.

Ministers also agreed to hold a review into air passenger duty (APD).

Flybe serves around 170 destinations and has a major presence at UK airports such as Aberdeen, Belfast City and Manchester.

A Flybe spokesman would not comment on its financial situation.

A Department for Transport spokeswoman said: "We won't comment on speculation."

A spokesperson for Southampton Airport said: “Flybe remains an important partner of Southampton Airport and the connectivity it provides is vital to us, our passengers and the region we serve.

“Earlier this year the UK Government committed to levelling up all regions of the UK by conducting a review of regional connectivity. It’s important air passenger duty (APD) forms part of that review as it disadvantages regional aviation and stifles the growth and prosperity that it supports.”

The airport has argued that Flybe's problems show the need for a longer runway, which would make it less reliant on a single airline.

An application for a runway extension is due to be considered by Eastleigh planners in May.