Monarch estimates latest annual profit at 'mid-teens'

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Monarch Group is expecting to report a pre-tax profit in the “mid-teens” of millions of pounds for its latest financial year ended 30 October, says group strategy director Stuart Jackson.

Jackson, who stresses that this prediction is based on unaudited figures, says the UK leisure operator would look to confirm the pre-tax profit within its full-year financial results, to be published in April 2014.

The group boosted gross revenue 16% to £1.24 billion ($2 billion) in the 12-month period. Monarch Airlines grew revenue 12% to £763 million as passenger volumes increased 9.5% to some seven million. "New disciplines in revenue management" helped drive a 3% increase in total revenue per seat, to around £92, says Monarch, while retail revenue per seat rose 30%, to almost £19.

Monarch Airlines has achieved almost £52 million of cost savings over the last two years, with about a third of that coming from reduced fuel consumption, says chief executive Iain Rawlinson. "The ongoing modernisation programme will yield some more cost savings, but it is a no-redundancy approach, so this is all about business efficiency," he adds. "We have made huge progress in recontracting some of our major material contracts, including with airports."

Rawlinson says the goal is to bring costs down to a level comparable with Monarch Airlines' low-cost competitors such as Ryanair, EasyJet and Vueling.