Monarch Airlines will pay its 358 passengers stranded for two days at Sharm el-Sheik £100 each in compensation.
A Monarch spokeswoman said: “We have offered a £100 payment per passenger as a goodwill gesture, plus reasonable expenses.”
The airline however denies reports that passengers were given inadequate refreshments.
“Passengers were given refreshment vouchers at the airport,” she said. “They had breakfast and lunch at their hotels on Monday before leaving for the airport, then breakfast and lunch the next day. They were well fed and watered.”
The Monarch charter was due to depart for Gatwick late on Sunday May 25 when a problem was detected with the aircraft’s hydraulics. Parts were flown over from Cairo and the UK but the problem still wasn’t fixed, forcing Monarch to send a replacement aircraft on May 27.