Monarch Group returns to the black for its fiscal year

Monarch Group (Monarch Airlines) (London-Luton), the UK’s leading independent travel group, has announced its unaudited results for the Financial Year ended October 31, 2013.

Commenting on the Group’s 2013 performance and the outlook for 2014, Executive Chairman, Iain Rawlinson, said:

“I am delighted to announce the return to profitability of The Monarch Group in 2013. This was the outcome targeted by our 2011 refinancing, which was based on a clear plan that combined the achievement of business efficiencies and intra group synergies with growth strategies for each business area.  All these elements have been delivered in tough markets.

“Whilst we are encouraged by the more positive recent economic news of late, in the short-term there remains overcapacity in the aviation industry and we believe many travel customers are cautious about the economic outlook. However, our Group structure, combining the three mutually supporting business areas of the scheduled airline, tour operations and aircraft engineering, each with its own independent growth strategy, provides us with resilience in this very competitive market environment.

“The actions we have taken in the last two years provide strong foundations from which to plan the next phase of growth and development.  Our steady investment in this period – in strengthening the group and divisional management, raising awareness of our trusted travel brands, improving distribution, introducing business efficiencies, and answering the needs of customers – provides a strong platform from which to complete our modernisation agenda. ”

Summary (October 31 year-end)

KEY STATISTICS

2013

Unaudited Statutory

2012

Statutory

Change

Gross turnover (£m)

1,237.5

1,071.5

+15.5%

Monarch Airlines (£m)

763.2

683.5

+11.7%

Tour Operations (£m)

336.4

291.4

+15.4%

Monarch Aircraft Engineering (£m)

107.2

86.3

+24.2%

Other (£m)

30.7

10.3

+198.1%

Turnover, net of intra-Group sales (£m)

960.5

825.1

16.4%

Web traffic – unique visitors (m)

21.9

20.0

+9.5%

Gross e-commerce revenue (£m)

520.0

479.0

+8.6%

2013 Group Highlights

  • All trading divisions profitable for the year on a pre-exceptionals basis
  • Successfully delivered efficiency programs, achieving annualised cost savings of £52 million and increase in intra group turnover of an additional £31 million
  • Investment of some £20 million in aircraft engineering facilities, and systems to increase operating capacity and improve efficiency
  • Significant increase in unique visitors to the Group’s e-commerce platforms, up 10% to 22 million
  • Group-wide roll out of Olympics-inspired ‘WorldHost’ Customer Service programme
  • Launch of The Monarch Foundation, providing focus for charitable and CSR activities

Monarch Airlines in FY2013

  • 11.7% increase in gross revenues to £763.2 million
  • 10.1% increase in capacity to 8.1 million sector seats and on track to deliver 10 million sector seats by end 2016
  • 9.5% increase in airline passenger volumes to 7.0 million
  • Advanced plans to order up to 60 new narrow body aircraft in Q1 2014 (valued at US$6 billion at list prices)  to continue fleet renewal program
  • New base at Leeds-Bradford Airport established
  • UK network development so that over two thirds of the UK population lives within a 90 minute drive of one of Monarch’s six bases[1]
  • New advertising campaign to be launched Christmas 2013 emphasising Monarch Airlines’ customer service heritage and commitment to providing “Superior Customer Experience at Competitive Price”

Tour Operations in FY2013

  • 15.4% increase in gross revenues to £336.4 million
  • 12% growth in passenger volumes to 911,000, substantially out-performing the market
  • 18% growth in Package Holiday volumes, continuing the trend for consumers to seek ‘care, convenience and financially protected holidays’[2]
  • 5.6% increase in unique visitors to package holiday websites to 9.3 million
  • Successful migration to new, flexible enterprise technology platform
  • Continued investment in differentiated offer for customers

Monarch Aircraft Engineering in FY2013

  • 24.2% increase in revenues to £107.2 million
  • 26% growth in revenue from 3rd party customers
  • 80% increase in maintenance capacity following the opening of a new state-of-the-art facility  at Birmingham Airport
  • Introduced Bombardier and Embraer type aircraft servicing capability

Copyright Photo: Ton Jochems/AirlinersGallery.com. Monarch Airlines is reviewing tender offers from the manufacturers and is expected to place a large aircraft order up to 60 aircraft in early 2014. A new order with Airbus is expected. Airbus A321-231 G-ZBAF (msn 2730) is seen in action at Palma de Mallorca.

Monarch Airlines: AG Slide Show

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