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Monarch issues a rebuttal as rumours swirl the airline is about to go bust

Luton-based carrier Monarch Airlines has been forced to allay holidaymakers’ fears that it is about to go bust after a weekend of rumour and conjecture.

Fears for the budget airline grew over the last 48 hours after it was suggested that planes from other airlines had been lined up to ferry passengers home in the wake of any potential collapse at the company.

Monarch, which employs 2,800 out of Luton, has had a troubled couple of years, which included a £100m rescue package in 2014 as the carrier was sold off to investors Greybull Capital.

However, the firm has strongly denied that it is about to go under and said that it was ‘operating well’ and was hoping to turn a profit of £40m this year.

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

According to the BBC, the airline is currently in talks to secure new financial backing to help it ‘weather tougher market conditions’, funding which the broadcaster understands is required to renew its Air Travel Organiser’s (ATOL) licence.

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