Peterborough-based Thomas Cook is considering the sale of its airline as it seeks to tackle widening losses.
The holiday giant has announced a strategic review of its 103 aircraft fleet after revealing losses had increased to £60 million for the three months to the end of December.
It is a rise of £14 million for the same period a year earlier.
Sales rose £1.66 billion -up one per cent led by demand for getaways to Turkey and North Africa.
Debt to the end of last rose to £1,588 million.
The company, which employs about 1,000 people at its offices in Westpoint, Lynch Wood, is hoping to invest in its own hotel chains as it seeks a return to profitability.
The firm says the review of its airline will cover all options including a sale.
Three months ago, the travel operator revealed a £163 million loss, blaming its on the long summer.
Chief executive Peter Fankhauser said: “As expected, the knock-on effect from the prolonged summer heatwave and high prices in the Canaries have impacted customer demand for winter sun.
“Bookings for Summer 2019 reflect some consumer uncertainty.”
Mr Fankhauser said the company needed need “greater financial flexibility and increased resources” as it sought to invest in its own-brand hotels and the digitising of its holiday sales processes.