Rescued Monarch on course for profit thanks to cost cutting and strong pound
Monarch Airlines has revealed it is on course to arrive at profitability in the second half of this year, after cutting winter losses by £40 million.
The airline, which was days away from closure last autumn, was rescued by Greybull Capital, a London investment fund, and given a lifeline of £125 million in exchange for a 90% stake.
Today Monarch reported a first-half loss of £69.9 million, compared with £110.6 million at the same point last year.
As part of its restructuring 700 people left the airline, out of 3,300, while the staff who remained took 30-35% pay cuts.
Former BA veteran Andrew Swaffield, who took over as chief executive last year, told the Evening Standard that bookings for the summer were looking good, helped by the favourable euro exchange rate.
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“People are bargain-focused but they are also booking more frequent, if shorter holidays and tending to book later,” he said.
Monarch has ditched its charter and long-haul flights as part of its restructuring, which saw it remove £200 million of permanent costs.
Separately easyJet posted a 7.2% rise in passenger traffic for May, carrying nearly 6.5 million passengers last month compared with 6.05 million a year earlier.
