The Hungarian low-cost carrier said it would add two extra aircraft, bringing its total fleet size at the Bedfordshire airport to seven. 

The deal comes just days after Monarch administrators KPMG confirmed British Airways owner International Airlines Group had acquired the failed airline’s take-off and landing slots at Gatwick after KPMG won a legal battle to be able to sell off the assets.

Monarch’s slots at Gatwick and Luton were seen as being one of the failed company’s most valuable assets - estimated to be worth a combined £60 million - following the carrier’s demise on October 2.

The new investment will see Wizz’s capacity at its Luton base increase by 18% year-on-year to a total of 7.1 million seats in 2018 and the creation of more than 70 jobs.

Extra routes from Luton “will be announced in due course”, Wizz said.

Jozsef Varadi, chief executive, said: “We continue to develop our business in the United Kingdom.

“Following the announcements of establishing Wizz Air UK and our accelerated growth plan, just a few days ago here we go again. Acquiring airport slots and airport nightstands at Luton will enable us to enhance our presence and competitive position in the London market.

“While Brexit will certainly pose challenges to the airline industry, we see it as an opportunity for Wizz Air, as our highly efficient low fare model will prevail even more under the new circumstances.”