The budget airline Monarch has moved to downplay speculation that emerged over the weekend suggesting that it could be about to collapse.

Social media was rife was talk that the company had run into financial problems and that flights were at risk.

On the back of the collapse of LowCostHolidays earlier in the summer, the speculation led to concern amongst Monarch customers that they could be about to lose flights that have been booked for some time.

As a result of the social media talk, Monarch responded with a statement on Monday morning to deny there was any cause for concern despite a ‘difficult trading period’ in recent months and that flights were all operating as normal.

“Over the weekend, there has been negative speculation about Monarch’s financial health,” the statement read. “Monarch is trading well and is expected to achieve an EBITDA of over £40m at the end of this financial year (October 2016). This is despite a difficult period for the holiday industry due to terrorist incidents, Brexit and the resulting devaluation of sterling.

“Our flights and holidays are operating as normal, carrying Monarch customers as scheduled.

“To weather tougher market conditions and to fund its ongoing growth, Monarch expects to announce a significant investment from its stakeholders in the coming days.”

Monarch currently operates from five airports in the UK to more than 40 destinations.