The company operating a cruise ship that capsized after hitting rocks off western Italy on Friday says the captain may have "committed errors".

Costa Crociere, which also acknowledged that emergency procedures had not been followed, said in a statement that “it seems that the commander made errors of judgement that had serious consequences.”

Capt Francesco Schettino is suspected of manslaughter, but denies wrongdoing.

Costa Crociere said he appears to have sailed too close to land and not to have followed the company's emergency procedures.

"The route followed by the ship turned out to be too close to the coast, and it seems that his decision in handling the emergency didn't follow Costa Crociere's procedures which are in line, and in some cases, go beyond, international standards," Costa Crociere added.

The Costa Concordia is lying on its side just metres off the Tuscan island of Giglio.

Two French passengers and one Peruvian crew member were confirmed killed, apparently after jumping into the cold Mediterranean waters after the Italian liner hit rocks on Friday and began to keel over with up to 4,200 people on board.

A rescue operation is still underway.

Image: Getty