LONDON (Reuters) - British airline and holidays company Monarch Group [MONA.UL] stuck with its forecast for a return to profitability this year, after a turnaround plan helped its seasonal loss narrow by 37 percent in its first half.
Monarch, now in the hands of investment firm Greybull Capital following its sale by Switzerland's Mantegazza family last year, said 30 million pounds ($46 million) of the improved winter performance was due to "self-help" measures.
The Luton-based company which primarily flies British holidaymakers to destinations in Spain, Italy and France said it remained on track to deliver double digit earnings for the 12 months ended Oct. 31, in line with a forecast made in January.
Monarch's chief financial officer Barry Nightgale told reporters on a call on Thursday that the company was confident about its forward order book.
"If the trends continue the way they are, we'll quickly eat into those winter losses," he said.
Monarch competes against Europe's biggest and second biggest budget carriers Ryanair (I:RYA) and easyJet (L:EZJ) respectively in the continent's fiercely competitive short-haul market, where both airlines have recently suggested that fares could fall slightly.
"Our goal is to make sure our cost base is competitive so that we can respond to whatever the market does and we're very confident we can do that," Monarch chief executive Andrew Swaffield said.
For the six months ended April 30, Monarch posted a loss of 69.9 million pounds compared to the 110.6 million pound loss sustained in the same period last year.
Capacity reductions, ending loss-making routes, plus around 700 job losses and pay cuts of between 30 and 35 percent for remaining staff, as well as a cheaper fuel bill, all contributed to the reduced loss.
Monarch plans to revamp its fleet in the next five years with 30 Boeing (NYSE:BA) 737 MAX 8 planes it has on order, with the CEO suggesting that the company would likely take a decision on the options it has on additional jets some time next year.
Separately on Thursday, easyJet reported a 7.2 percent jump in traffic in May compared to the same month last year, while Wizz Air (L:WIZZ), another budget carrier, said its passenger volume grew 20 percent in May.
(editing by Mark Heinrich) OLGBBUS Reuters UK Online Report Business News 20150604T110950+0000