Financial Analysis of Monarch Airlines

Abstract

This report is an individual extension to the group report submitted to Monarch Airlines Ltd in part submission for the management project. The report covers a detailed financial statement analysis of Monarch Airlines Ltd. and one of its competitor Jet2.com as a peer comparison. As the budget airline industry is a very saturated and highly competitive industry, this study should prove to be useful for Monarch Airlines in their future decision making by reflecting on past performance and highlighting key factors contributing to either positive or negative results. A part of the analysis was to find key financial ratios by assessing and evaluating balance sheets, income statements, cash flow statements of both the companies and doing a comparative analysis to compare the financial performance of Monarch Airlines with one of its peers. After doing a thorough analysis of key financial ratios, we come up with conclusions, which highlight the key implications that have been recurring in the analysis, and recommendations to Monarch Airlines for achieving sustainable growth as a company in a competitive industry