Flybe shares (LON:FLYB) rose on Wednesday after Virgin Atlantic confirmed it was continuing talks with the airline regarding a potential takeover.

Last month, Flybe announced it was considering its options, including placing itself for sale following the issue of several profit warnings for the year.

The low-cost airline has come under pressure in recent years amid rising fuel prices and pound sterling volatility all impacting profits.

News of the potential takeover by Virgin first hit the headlines back in November, when a Virgin spokesperson confirmed the speculation.

A Virgin spokesperson said at the time: “Virgin Atlantic notes the recent media speculation related to Flybe. Virgin Atlantic has a trading and codeshare relationship and confirms that it is reviewing its options in respect of Flybe, which range from enhanced commercial arrangements to a possible offer for Flybe.

“Virgin Atlantic emphasises that there can be no certainty that an offer will be made nor as to the terms of any offer.”

Virgin Atlantic was founded by British billionaire Richard Branson, who is currently focusing his attention on his Virgin Galactic spaceflight venture.

It currently codeshares with Flybe as well as US airline, Delta Airlines. Delta currently owns a 49% stake in Virgin Atlantic.

Last July, Virgin Atlantic announced it had agreed to sell a 31% stake to Air France-KLM, as part of a £220 million deal.

Shares in Flybe are currently +6.91% as of 11:16AM (GMT).