30-Jan-2015 8:53 AM

The Monarch Group expecting to return to profit in 2015

The Monarch Group announced (29-Jan-2015) it expects "to return to profit this year", having reached its revenue and cost targets in its first 100 days of trading since restructuring. The company is forecasting a 20% reduction in ASKs for 2015, with a 3% increase in RASK and 9% decrease in CASK. The Monarch Group stated: "The restructuring that has been undertaken will enable the Group to deliver double digit earnings this year. In addition, during 2015 Monarch stands to benefit from the sharp fall in jet fuel prices, having un-hedged its position in September last year. This compares favourably to 2014, where the Group expects to incur losses (LBITDA) of around £44 million and pre-exceptional costs of £125 million (or losses of £169 million post exceptional costs)." The Monarch Group CEO Andrew Swaffield said: "We are delivering a proper restructuring and turnaround of Monarch as we said we would. There is much to be done, but we now have a business with much lower costs, a solid platform for developing sustainable profitability and a clear strategic focus." [more - original PR]

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