Rolls-Royce shares sank to 16-year lows on Monday (September 21).
That after it said it was considering a rights issue to raise as much as 3.2 billion dollars.
The company makes engines for airliners, military jets and ships.
It says no decision has been taken about exactly how much money to raise, or by what means.
Shares in the firm were down around 8% by lunchtime in Europe.
They have now shed about 76% of their value this year.
The slump in air travel has hit Rolls-Royce hard, as airlines pay it according to how many hours its engines fly.
In August the firm said it wanted to sell turbine blade maker ITP Aero and other assets to raise around 2.5 billion dollars.
Two senior industry executives who deal with Rolls said it could look for a state bailout, or even re-nationalisation.
The firm was last nationalised in 1971, and then later privatised.
Now the UK owns a golden share in Rolls, and its importance to exports and military technology has fuelled talk of a state bailout.
With public finances already strained, however, it’s not clear if there is government appetite for such a move.
Meanwhile, planemakers Boeing and Airbus are both concerned about the health of a critical supplier.
The Financial Times newspaper says Rolls is in talks with foreign sovereign wealth funds, including Singapore’s, over investment.
But any move of that kind would need UK consent under rules which limit foreign ownership of the company.