Ryanair said it may implement temporary wage freezes for staff and confirmed airfares will rise by double-digits next summer due to surging fuel costs following the US-Israel war with Iran.
The airline expects fuel prices to remain elevated "well into 2027" absent a "swift resolution" to the conflict. Ryanair's fuel bill is forecast to be €2bn higher in the short-term. Chief executive Michael O'Leary said fares would need to rise by double-digits to help cover costs, though he acknowledged the airline may fall short of its earlier forecast for a 20% increase.
Ryanair said the pay freeze could apply from April 2025 as multi-year wage agreements with unions expire. Unite, which represents Ryanair staff, was contacted for comment on the proposal.
Pre-tax profits fell 16% to €2.4bn in the six months to end-September, largely due to fuel costs jumping 15%. The airline hedged 80% of its fuel bill at fixed prices, but the cost of the remaining 20% has risen sharply.
Aviation fuel prices surged this year because the US-Israel war with Iran reduced refined product supplies from the Gulf and increased competition for fuel produced elsewhere, Ryanair said.
The airline also said it would cut winter flights further and expects short-haul capacity reductions to continue into summer 2027 and remain constrained into the early 2030s. It plans to increase use of artificial intelligence in back-office and support functions.