MIAMI — British budget carrier Monarch Airlines revealed today that it is in about to “announce a significant investment from its stakeholders in the coming days” after rumors spread during the weekend through social media that it was about to collapse.
“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.” Monarch said in a statement.
The airline has been responding to customer inquiries online, saying that rumors “are not true” and flights are “operating as normal.”
Despite the response from Monarch, several aviation sources claim that at least a dozen aircraft have been chartered and deployed to holiday destinations in Spain and Italy, due to an eventual repatriation of stranded passengers, in case of a shutdown of the airline.
Established in 1968, Monarch flies from five airports in the UK to 40 destinations, and includes tour operator Cosmos Holidays and an aircraft maintenance division. The airline, owned by private equity firm Greybull Capital, employs around 2,800 people.
Last year, the group carrier 625,000 passengers.