Ryanair weighs pay freeze as fuel costs push up fares
Ryanair is considering a temporary staff pay freeze and expects materially higher summer airfares after fuel costs rose sharply, BBC News reports.
What you need to know
BBC News reports Ryanair is weighing a temporary staff pay freeze and expects materially higher airfares next summer after a sharp rise in fuel costs linked to the US-Israel war with Iran. The airline forecasts a €2bn short-term fuel bill increase and reported pre-tax profits down 16% to €2.4bn.
- Ryanair confirmed airfares will be materially higher next summer because of rising fuel costs.
- The airline forecast its fuel bill would be €2bn higher in the short term.
- Pre-tax profits fell 16% to €2.4bn in the six months to the end of September as fuel costs rose 15%.
- Chief executive Michael O'Leary said double-digit fare increases would be needed to cover fuel costs.
- Unite said it had not been told of any pay freeze proposal and expects an existing multi-year pay deal to be honoured.
Fuel costs drive fare outlook
Ryanair expects fuel prices to stay high well into 2027 unless the US-Israel war with Iran is resolved quickly, according to BBC News. The conflict has reduced Gulf supplies of refined products and increased competition for output elsewhere.
The airline forecast a €2bn short-term rise in its fuel bill. Chief executive Michael O'Leary said fares would need to rise by double digits to help cover the cost, and he reiterated an earlier forecast that a 20% increase would be needed, while saying he was unsure that level would be reached. He expects double-digit increases across Europe in 2027.
Profits, pay and capacity
Pre-tax profits fell 16% to €2.4bn in the six months to the end of September, largely because fuel costs jumped 15%, BBC News reports. Ryanair said 80% of its fuel bill was hedged, but the remaining portion was costly.
Ryanair said it was weighing a temporary pay freeze as multi-year union deals end, with the policy possible from April next year. Unite national officer Oliver Richardson said the union had not been advised of such proposals and expected its multi-year deal, which covers next year, to be honoured.
The airline also said it would slow hiring, cut more winter flights and expand artificial intelligence use in back-office functions.
What did Ryanair say about fares and staff pay?
BBC News reports Ryanair expects materially higher fares next summer due to fuel costs and is considering a temporary pay freeze from April. Unite said it was not told of such proposals and expects its pay deal honoured.
Sources & context
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