Danish carrier Cimber Sterling is in discussions with possible investors as it looks to secure a capital injection, having warned of worsening losses in the current financial year.
Cimber Air, which has been struggling to overcome financial difficulties, is expecting a full-year earnings deficit of DKr190-200 million ($36-38 million) against earlier forecasts of DKr125-145 million.
"Due to the continued surplus capacity in the airline industry and the resulting low profitability, the company needs to strengthen its capital base," said Cimber Sterling.
It has received "positive interest" from "a number of potential investors" - both financial and industrial - and is holding "ongoing discussions" although there is no agreement yet regarding investment or possible acquisition.
Cimber Sterling, which operates Boeing 737s, Bombardier CRJs and ATR turboprops, said the discussions are aimed at ensuring "long-term strengthening" of its capital base and strategic market position.