Monarch Airlines has reported pre-tax losses of £291 million following a spate of terrorist attacks and Britain’s vote to leave the EU slowed demand.
In its latest accounts filed on Companies House, the group also reveals it is “reviewing the current business model” to establish what the “size and shape of the airline should be going forward”.
Financial statement for the year ending October 21 2016, show the company made a pre-tax profit of £12.9 million, compared to £39.3 million the previous year.
Total revenue stood at £558 million, compared with £655 million in 2015.
The report cites a “number of trading headwinds” during the year which have impacted revenue, bookings and load factor, including the continued closure of Sharm El Shiekh airport, terrorist incidents in Turkey and the EU Referendum which resulted in “depressed bookings” and the devaluation of the Pound.
The airline will take delivery of its first Boeing 737 aircraft in March 2018 which it says will “significantly improve the underlying economics of the business” due to being more fuel efficient and requiring less maintenance.
Monarch received a £165 million cash injection from majority shareholders Greybull Capital last October after coming close to failure.
The lifeline convinced the CAA to renew its Air Travel Operators’ Licence (Atol) until this September.