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26 Sep 2016

BY Jennifer Morris

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Monarch insists flights operating as normal despite financial health speculation

Monarch Airlines says its flights are operating as normal this morning after consumers and the trade voiced concerns about the carrier’s financial health over the weekend.

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Monarch insists flights operating as normal

In a statement this morning (Monday) Monarch said it expected to announce a significant investment in the coming days.

 

Over the weekend Twitter was full of speculation from Monarch customers and the travel trade, asking whether the company was going bust.

 

Suggestions were made that United Airlines had placed Boeing 747 aircraft at certain destinations in Europe on ’Monarch’s schedule’.

 

In recent times the Civil Aviation Authority has built alliances with North American airlines to provide capacity for repatriations.

 

There were also claims that other airlines were poised to operate flights from some of Monarch’s destinations such as Palma in Majorca.

 

On Sunday evening a Monarch spokesman denied the rumours of financial instability. He told TTG: “We don’t know where these rumours started but they are not true.”

 

And on Monday an updated statement said: "Our flights are operating as normal, carrying Monarch passengers as scheduled.

 

"To weather tougher market conditions and to fund its ongoing growth, Monarch expects to announce a significant investment from its stakeholders in the coming days."

 

The firm said it was trading well and is expected to achieve an Ebitda of more than £40m at the end of this financial year (October 2016).

 

In June TTG reported that Monarch Group was looking to tap external sources for an additional £35 million in order to meet potential trading headwinds and commitments to its owners.

 

Monarch’s Atol is due for renewal at the end of this month, whereby the company will have to demonstrate that it has adequate resources for the upcoming year.

 

The update comes after senior industry figures warned last week that a travel company failure was likely before the end of the year.

 

Speaking at TTG’s ‘The High Cost of Lowcost’ debate, Chris Photi, head of travel and leisure at White Hart Associates, said: “I don’t think it’s the end of the failures if I’m honest - I think this year could see some more.”

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