Regional Express Airlines, or REX, has asked for a trading halt on its shares on the Australian Stock Exchange, as its deepening financial strife continues.
The airline, which has requested the trading halt pending an announcement on Wednesday, flies into and out of Devonport, Burnie and Hobart.
Future bookings are still being taken on its website.
Rex employs around 2000 aviation workers around the country, including some in Tasmania.
If the airline was to collapse, it would see the end of competition in Devonport and Burnie markets, where Qantaslink currently operates as well, giving the monopoly to the Flying Kangaroo.
Rex has been unable to return a profit since the pandemic and a third of its Saab 340 fleet, as used on the Devonport and Burnie runs, are out of action due to a shortage of parts, pilots and engineers.
The airline started a jet service into Hobart last year using Boeing 737-800 aircraft and has taken on Virgin and QANTAS head to head on the lucrative Melbourne to Sydney route.
