Loss-making Norwegian airline Flyr said it had failed to raise the cash it needs from shareholders and other potential investors.
It said this had left it in a "critical short-term liquidity situation".
While the board continues to explore "feasible alternatives" to secure its continued operation, the potential solutions could wipe out the remaining value of its existing shareholders, the carrier said in a statement.
Flyr in November said raising cash was vital for the company to survive the upcoming winter season and prepare for a ramp-up in spring and summer of 2023.
But it was only able to raise about half the required cash at the time.
The company said it had tried in recent days to secure funding of 330 million Norwegian crowns ($33.27m) but the effort failed.
"Market conditions and continued uncertainty with regards to airline travel and earnings through 2023 have deterred investors from committing capital for the required period of time," Flyr said.
The company, whose rivals include Norwegian Air and SAS, said on October 4 it would make heavy spending cuts to preserve cash during the winter, including furloughs, and put non-profitable routes on hold.
Over the weekend, British airline Flybe ceased trading and all of its scheduled flights were cancelled.
The UK Civil Aviation Authority (CAA) made the announcement and urged those with booked Flybe flights not to travel to airports.
Flybe had returned to the skies in April following an earlier collapse.
It operated up to 530 flights per week across 23 routes, serving airports such as Belfast City, Birmingham, East Midlands, Glasgow, Heathrow and Leeds Bradford.
