An airline spokesperson said the decision to withdraw the protection came following its Atol re-licence agreement in October and its coinciding £165 million investment from owners Greybull Capital.

It means as of December 15, it is “anticipated” that Atol protection will only be given on package holidays, bringing the airline in to line with its other UK scheduled rivals.

A statement from the airline read: “This is a clear sign of our financial stability. Monarch was required to Atol protect its flight only bookings, in addition to its package holiday bookings, at the time of its sale to Greybull Capital in October 2014.

“Monarch was different in that respect from all other UK scheduled airlines. No other UK scheduled airline Atol protects flight only bookings.

“After two years of being the exception, Monarch is now the norm.”

However, the change in protection comes on the same day that Monarch reduces all credit card charges to 0%.

The reduction of up to 3% will apply to all flight and holiday bookings made directly with the company and will save a family of four between £40 and £60 per trip.

The change in policy takes advantage of the fact that credit cards offer some financial protection to consumers in the event that the holiday firm they have booked with goes bust.

Chief commercial officer Ian Chambers said: “Going to 0% for credit card bookings means that our customers can get the best value from their flight and holiday bookings – and benefit from the protection that credit cards offer, without having to pay extra for it.”