Virgin Atlantic in talks with FlyBe, the regional airline that put itself up for sale last week.

In a surprise move, Virgin Atlantic has become a surprise potential buyer for the London-listed company.

The airline that is partly owned by Richard Branson. The group closed its domestic flight subsidiary Little Red four year ago after trying and failing to crack the internal flight market.

FlyBe announced that it had put itself up for sale earlier this month after higher fuel prices, falling demand and a lower pound hit the airline.

In the six months to the end of September, FlyBe’s profits plunged 54%.

At the time, the group told investors that it was working on a strategy to “further capacity and cost-saving measures”.

“Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs,” chief executive, Christine Ourmieres-Widener said at the time.

Other airlines have also taken a hit. Last year, Monarch Airlines collapsed. Earlier this year, Primera Air also filed for administration.

Flybe and Virgin Atlantic have not commented.

Shares in FlyBe (LON: FLYB) have soared 25% on Friday’s opening.