A company can continue making losses for a number of years yet remain in business. It can use reserves, increase borrowings, tap existing shareholders, sell assets, issue new shares, etc. What it can't do is run out of cash.
FlyBe must be hoping for glimmers of light in the economy, both in UK and Europe, but at present the UK economy is looking flat, and Europe positively worrying.
I suspect there is no short-term concern about FlyBe's ability to survive, but its route to survival may mean adjustments to its business model, and that could be uncomfortable for those involved.