The result represents a swing of £130 million and comes just year on from the firm’s well-publicised financial problems.

Monarch expects earning before interest and taxes to be more than £40 million and earnings before interest, taxes, depreciation, amortization, and rent (ebitdar) to exceed £140 million.

Monarch will likely file its full accounts at Companies House next year.

Andrew Swaffield, Monarch Group chief executive, said: “I am delighted that we have exceeded our profit expectations for the full year. This has been achieved despite serious challenges in some of our key markets in the Eastern Mediterranean.”

Monarch’s return to profit comes amid geo political problems in some of its destinations.

The terror attacks in Tunisia closed the country as a destination for UK tourism and increased the overall carrying capacity on other routes, including to Monarch’s heartland destinations.

The Luton-based carrier has also been forced to cancel flights to Sharm el Sheikh until January following the downing of a Russian charter aircraft in an act of terrorism.

Swaffield added: “Our performance reflects the successful delivery of our turnaround plan, which has permanently removed £200 million in annual costs from the business, and the hard work of all our people. Monarch Group is now firmly on the path to sustainable profitability.”

Last October Greybull Capital completed a deal to take a 90% stake in the company. At the same time the management team embarked on a company-wide restructure, which saw charter and long-haul flights come to an end as well as a number of redundancies.

Monarch’s last full-year results revealed substantial losses at the business, but Swaffield believes the business has now turned a corner.