Monarch has described the current trading environment as the ‘toughest ever’ and warned profits will be down by 35% this year.
Full-year earnings to October 31 2016 are expected to fall from £74m in 2015 to £48m, but new bookings for summer 2017 are up.
Summer 2017 holiday bookings are up 40% year-on-year and summer flight-only bookings are up 10%.
Monarch added it is ‘well positioned to weather ongoing industry challenges’.
Chief executive Andrew Swaffield said: "The record investment in the business announced in October, enhanced marketing initiatives including our first TV advertising campaign in three years and continuing cost control means Monarch enters 2017 in a strong position."
