As like many other operators, the carrier has until midnight tonight to renew its Atol, and must show that it has enough money to operate for three months in order to secure the licence.

The Guardian reports that Monarch may be able to seek a temporary extension to its licence from the CAA if it can show it is close to funding.

The airline has been in talks with the CAA following concerns about its financial health.

Monarch reacted on Monday with a statement which insisted: “Monarch is trading well and is expected to achieve an Ebitda of over £40 million 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 passengers 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.”

A spokesperson for the airline refused to comment on any potential talks over the licence renewal.