Q&A

Why is it in trouble?

Terrorism cost Monarch business in key markets such as Turkey and Egypt. The weak pound has increased the cost of fuel and aircraft leases.

How are its finances?

Profits of £27million in 2015 were wiped out by a £219million loss in 201 . It was forced to turn to private financiers for a £1 5million rescue, the fourth cash injection in as many years.

How would loss of Atol affect Monarch?

The Air Travel Operator’s Licence affects only 5 per cent of it business – package holidays. But Atol removal would trigger such a loss of faith from customers that the firm would risk going into administration.

If Monarch goes bust what happens to customers abroad?

If they are on a package holiday, they are Atolprotected and will be flown home for free. If they are on flight-only bookings, they may not be covered but the Civil Aviation Authority is organising some rescue flights.

... and bookings for future holidays?

Package holiday customers will get their money back – but with no guarantee of being able to rebook the same holiday with another firm.

What about Monarch flight-only bookings?

Flights alone are not covered by the Atol scheme. Insurance is unlikely to cover airline failure either. If the flights cost over £100 and were booked with a credit card, they are covered under the Consumer Credit Act – meaning a refund.