Ryanair says it might freeze pay to offset high fuel prices
The airline expects higher fares to fall short of covering the cost surge and is considering lower crew ratios and more artificial intelligence.
- Ryanair reported a 15% profit decline to €2.15 billion for the six months ending September 30, with CEO Michael O'Leary warning the airline is considering pay freezes to counter soaring fuel costs from the US-Iran war.
- Fuel costs surged 10% during the period as the unhedged 20% of Ryanair's fuel exposure faced doubling prices, despite the airline hedging 80% at $67 a barrel.
- Passenger numbers increased 6% to 125.8 million and revenues rose 3% to €10.08 billion, yet average fares fell 4% year-on-year to €55.70, limiting profit recovery.
- O'Leary warned that rising fares next year will likely not offset an estimated €2 billion fuel bill increase, prompting reviews of crewing ratios and artificial intelligence use.
- Ryanair declined to provide full-year guidance, citing it remains "highly sensitive to conflict escalation in the Middle East and Ukraine," and expects jet fuel prices to stay elevated through 2027.
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Ryanair Holdings expects a significant increase in its fuel costs in the coming fiscal year and is evaluating possible cost cuts to mitigate the impact, warning that raising ticket prices and reducing routes will not be enough. The company released, on Monday (2), the results relating to the second quarter of the fiscal year 2027. Exclusive material for subscribers. To have full access, access the link of the subject and register.
The increase in fuel costs is damaging the accounts of Ryanair. The Irish airline recorded a profit of 2,147 million euros during its first fiscal semester of 2027, ended in September, 15% less than in the same period of the previous year. In addition, Ryanair has warned that the fuel bill ... Continue reading "The increase in costs leads Ryanair to reduce the profit by 15% in its first fiscal semester"
The Local - Es
Ryanair to hit passengers in Europe with 'double-digit' hikes in air fares
Irish no-frills airline Ryanair said Monday it would launch a cost-cutting drive and hike fares next year to help offset the impact of soaring jet fuel prices driven by the Middle East war.
Ryanair has announced that the prices of air tickets will be "substantially higher from next summer, due to the cost of fuel for aircraft. The company has stated that it is expected that...
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