Monarch Airlines profit set to drop 35%

Monarch Airlines cautioned on Friday that its profit for the year is likely to be 35% lower due to a particularly tough trading environment.

The company, which received a £165m lifeline from its majority shareholder Greybull Capital back in October that allowed it to retain its license to operate, said full-year earnings were set to drop to £48m in 2016 from £74m the year before.

Still, Monarch sounded a more positive note about its outlook, saying it was well positioned to “weather ongoing industry challenges” and that new bookings for next summer were up 40% from the previous year.

Chief executive Andrew Swaffield said: "The record investment in the business announced in October, enhanced marketing initiatives including our first TV advertising campaign in three years and continuing cost control means Monarch enters 2017 in a strong position."