Europe

Monarch Airlines denies rumours of financial trouble

Monarch A321
Tis Meyer / PlanePics.org

Monarch Airlines has strongly denied it is in financial difficulty amid growing fears among passengers.

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 £40m 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 and holidays are operating as normal”, the airline said in a statement.

Monarch Airlines said it expects to announce a significant investment from its stakeholders in the coming days, that will help the airline to weather tougher market conditions and to fund its ongoing growth.

The British leisure airline carried 5.7 million passengers during 2015, a 19% decrease compared with 2014.

Monarch Airlines is part of the Monarch Group, of which the holding company is Monarch Holdings Ltd., which is 90% owned by Greybull Capital, the investment vehicle of the London-based Meyohas Brothers. The remaining 10% is held by the group’s pension fund. Other subsidiaries of the Monarch Group include Monarch Holidays (incorporating Cosmos Holidays), Monarch Hotels and Avro Flights.

Greybull is expected to participate in a new funding round but not to be the only investor. The 10 per cent of the company that Greybull does not own belongs to the pension fund of the Memories Group, the airline’s parent.

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