Coronavirus has raised new fears for the future of struggling airline Flybe.

The troubled airline, which has requested a £100m rescue loan from the UK Government, has said - like other airlines - it has been hit with a slump in bookings due to the outbreak of Covid-19.

Meanwhile, easyJet has already cut flights to and from the island because of the virus.

Flybe has been struggling with a £10m bill for air passenger duty (APD), as well as a slowdown in demand that has impacted the airline’s finances.

The Financial Times yesterday reported that the Exeter-based airline’s request for funding has not met certain criteria set out by the government.

According to the FT, Flybe believes it has enough financial resources to make it ’until the end of this month’.

Flybe, which is Europe’s largest regional airline, covers regional airports that other airlines don’t and has routes from the Isle of Man to Birmingham, Manchester and Liverpool.

It has more flights in and out of the island than any other airline.

The company is owned by Connect Airways, a consortium made up of Virgin Atlantic, Stobart Air and hedge fund Cyprus Capital, which formally took over last year, with the consortium also providing loans to Flybe.

In the rescue deal, the government said it would hold a review on APD.

Airlines claim APD restricts connectivity and passenger growth.

Passengers on domestic flights pay £26 in APD for a return trip, with higher rates for longer flights and premium cabins.

The tax is expected to be worth £3.7 billion to the UK Treasury in 2019/20.

This could be altered in the UK Budget on March 11.

Rival airline easyJet has confirmed that a slow down in demand for flights has led to it dropping some flights to and from the island.

An airline spokesman told the Manx Independent the public’s concern over coronavirus was driving the drop in demand.

He said: ’We can confirm that we have taken the decision to cancel a number of flights following a slowing in demand as a result of concerns over Covid-19.’

The cancellations are for some flights between the island and Liverpool and Bristol up to March 31.

’Customers are being contacted and moved onto flights operating on the same day or alternatively have been offered a full refund,’ the spokesman added.

’Standard terms and conditions apply on all flights which are unaffected as they will be operating as normal.’

There have been no cases of coronavirus in the island.

Rival airline easyJet has confirmed that a slow down in demand for flights has led to it dropping some flights to and from the island.

An airline spokesman told the Manx Independent the public’s concern over coronavirus was driving the drop in demand.

He said: ’We can confirm that we have taken the decision to cancel a number of flights following a slowing in demand as a result of concerns over Covid-19.’

The cancellations are for some flights between the island and Liverpool and Bristol up to March 31.

’Customers are being contacted and moved onto flights operating on the same day or alternatively have been offered a full refund,’ the spokesman added.

’Standard terms and conditions apply on all flights which are unaffected as they will be operating as normal.’

There have been no cases of coronavirus in the island.