EUROPEAN airline Monarch, which includes services from Leeds-Bradford Airport, said it is on course to return to profit this year following a rescue package of more than £100 million.

The Luton-based carrier said it reduced its fleet by eight planes to 34 and will end long-haul and charter flights this summer as it turns itself into a short-haul airline.

It was rescued last year by family investment firm Greybull Capital, who pumped £125 million into the loss-making company. The business also axed 700 jobs.

Monarch said it is now on track to post “double digit earnings” this year, compared to £44 million of losses last year excluding exceptional costs. The carrier said it has hit all of its revenue and cost targets in the 100 days since last year’s restructure.

Staff at the carrier, which employs about 3,200 people, agreed to a 30 per cent pay cut as part of the reorganisation – which is set to cut £200 million of annual costs.