Monarch touts new investment as it denies crisis rumours

Monarch touts new investment as it denies crisis rumours

Monarch today revealed that a “significant investment” was to be made within days.

This came after the airline strenuously denied speculation circulating on social media suggesting that it was in financial trouble.

Monarch said this morning that it expected to make more than £40 million in pre-tax profit by the end of its financial year in October.

The airline said it was "trading well" despite a difficult period for the industry because of terrorist incidents, Brexit and the weak pound.

The airline said in a statement: “Over the weekend, there has been negative speculation about Monarch’s financial health.

“Monarch is trading well and is expected to achieve an Ebitda of over £40 million at the end of this financial year (October 2016). This is despite a difficult period for the holiday industry due to terrorist incidents, Brexit and the resulting devaluation of sterling.

“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.

Officials at the carrier spent much of Sunday afternoon replying to more than 40 anxious customers and aviation enthusiasts on Twitter confirming that the rumours were untrue.

Monarch flights were operating to schedule this morning to and from airports such as Birmingham, Gatwick and Manchester.

The airline's website was allowing bookings and advertising holidays and flights.

A spokesman was previously not prepared to discuss suggestions made via Twitter that United Airlines had placed Boeing 747 aircraft at certain destinations in Europe with exactly the same schedule as Monarch.

This came amid unsubstantiated claims that “dozens of flights” by other airlines were to be operated back to the UK from Monarch destinations such as Palma and Tenerife.

Rumours were then sparked that the Civil Aviation Authority was preparing to repatriate passengers in the carrier was unable to fly them home, the Manchester Evening News reported.

The BBC also reported this morning that talks had taken place between Monarch and the CAA, possibly relating to bond requirements for forthcoming Atol renewals.

When questioned by Travel Weekly, the Monarch spokesman said: “Rumours are rumours. We don’t know where these have started, but they are not true.”

A CAA spokesman said the authority could not comment.

A United Airlines spokesman declined to comment.

Investment firm Greybull Capital brought Monarch from the brink of collapse in October 2014 for £125 million and instigated a £200 million cost-cutting exercise which saw the airline return to profit.

The airline carries more than six million passengers a year.

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