Struggling Danish airline Cimber Sterling said it was talking to investors about strengthening its finances after flagging higher-than-expected losses.
It said higher fuel prices had raised costs by DKK133 million kroner (USD$25.4 million) in its 2010 fiscal year and forecast an operating loss of between DKK190 million and DKK200 million before special items, versus an earlier forecast loss of DKK125 million - DKK145 million.
"The airline industry remains under tremendous pressure, facing unrelenting challenges," it said in a statement, citing surplus capacity.
"This situation has left its mark and as a result, Cimber Sterling's capital base is deemed to be insufficient," it said.
The airline had received positive indications of interest from a number of potential investors and discussions were taking place regarding a strengthening of its capital base, it added.
Cimber had in March signed an agreement with GEM Global Yield Fund for a DKK300 million equity capital commitment against the issuance of new shares.
Cimber's revenue was expected to be in a range between DKK1.92 billion and DKK1.95 billion, up around 25 percent on 2009/10, but down compared with an earlier forecast about DKK2.0 billion, it added.