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.
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 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.