Slovenia-based airline Adria Airways said it would cancel most flights on Thursday and Friday after a wave of cancellations on Tuesday and Wednesday due to financial problems.

Adria is the latest in a long line of small European airlines to run into financial trouble amid industry overcapacity, cut-throat competition and high fuel prices.

Slovenia's Civil Aviation Agency has given Adria Airways until Oct. 2 to present a financial plan to keep its license to operate.

"Adria Airways is still leading active discussions with potential new owners and major creditors and remains dedicated in reaching positive solution for all," Adria, which is owned by German investment fund 4K Invest, said in a statement.