Ryanair says it might freeze pay to offset high fuel prices
The airline said higher fares will not fully cover the increase and is weighing pay freezes, leaner crews and more AI to protect margins.
- 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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The airline is reviewing all costs across the group, with particular emphasis on, among other things, reducing airport charges and expiring employment contracts.
My Mother Lode
Daily RecordRyanair CEO anticipates European airfare prices up as much as 20% next year as jet fuel prices rise
The CEO for Ryanair expects European plane ticket prices may climb as much as 20% next year with the conflict in the Middle East ongoing. “So we’re facing 2027 where we have much higher oil prices… I think they’re going to get passed on in significantly higher airfares,” CEO Michael O’Leary said in a Monday...
Ryan Air intends to raise ticket prices and temporarily freeze wages to face a projected increase of $2.24 billion in fuel costs, after its quarterly profits declined by 6% to $1.80 billion.
Aftenposten
Ryanair CEO Michael O'Leary expects the price of airline tickets in Europe to rise by as much as 20 percent next year, due to unrest in the Middle East and rising fuel prices.
Low-cost airline Ryanair is considering a temporary freeze on employee wages and is forecasting significantly higher airfares next summer due to the sharp rise in fuel prices that began after the war between the US, Israel and Iran. The company's CEO estimates that they will have to increase fares by double digits.
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