Airline restraint in adding capacity this summer means the UK holiday industry has yet to see “crazy discounting” for the season.
That is the view of Monarch boss Andrew Swaffield, who has slashed 20% of Monarch’s airline capacity for this summer.
But the Monarch Group chief executive believes airline consolidation is inevitable.
He said: “The market is being reasonably sensible at the moment. There is no evidence of airlines going crazy discounting.
“But it’s always a risk. Monarch has done it itself in the past.”Swaffield admitted too-fast a growth in capacity had carried the airline close to the point of failing last year.
“The main cause of Monarch’s troubles was pursuing too much growth without sufficient [funds] on the balance sheet,” he said.
“Monarch had grown from 31 aircraft in 2011 to 42 in 2013. When the market faltered a little in the second half of 2013 the consequences were felt.
“It was the old story of too many planes chasing too few passengers. It is a common problem in the airline industry.”
He added: “There is a trend towards customers looking for bargains. If you put something on sale, people will buy it.”
Swaffield said: “Inevitably there will be consolidation in European airspace. There will be fewer airlines rather than more.
“But we will have a seat at the table now. We believe Monarch has a strong future so long as we demonstrate sustainable profitability.
“We needed to restructure the business properly and build a track record of success.”