Monarch Airlines owner Greybull Capital looks to refinancing deal to help company soar

Francesca Washtell
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Hed Kandi airplane - photocall and press launch
Greybull took over Monarch Airlines in 2014 (Source: Getty)

The investment firm behind Monarch Airlines is seeking tens of millions of pounds in refinancing for the British airline.

Today, Monarch, owned by investment group Greybull Capital, said that security concerns and the devaluation of the pound against the euro resulting from the Brexit vote, had made market conditions tougher.

City A.M. understands the purchase of 30 Boeing 737 Max 8 aircraft in October 2014 has also had an impact on the company’s current finances.

Read more: Monarch considers inbound and outbound bids after rescue

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.

Read more: Unite the union says Monarch Airlines' job losses are a "severe blow"

Monarch added was operating normally and was on track to make a profit this year, with earnings before interest, tax, depreciation and amortisation reaching £40m, 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.