UK airline Monarch denies speculation it is in financial trouble

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Aircraft of British carrier Monarch is parked on the apron at Larnaca airport, Cyprus November 7, 2015.

British airline Monarch Airlines said it was operating normally and was on track to make a profit this year, after questions were asked about its future on social media.

"Our flights are operating as normal, carrying Monarch passengers as scheduled," the airline said in a statement on Monday.

Monarch, owned by investment firm Greybull Capital, said that security concerns, and the devaluation of the pound against the euro resulting from Brexit, had made market conditions tougher, and to help fund its growth, it expected to announce an investment "from its stakeholders" in the coming days.

Despite the difficulties, Monarch said it was on track to post core earnings (EBITDA) of more than 40 million pounds in the year ended Oct. 31, in line with a forecast given last year.

Luton-based Monarch sells holidays and flights primarily to British holidaymakers travelling to destinations such as Spain, Italy and France.

The halting of holidays to Tunisia and Egypt's Sharm al-Sheikh resort, as well as a drop in demand for Turkey due to security concerns meant that customers were booking flights to Israel, mainland Spain and the Canary Islands.

Monarch issued the statement after passengers tweeted the airline over the weekend asking whether speculation that it was going to "go bust" were true.

It replied to customers on its Twitter feed that it was unsure of where the rumours originated.


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