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Ryanair considers pay freezes and expects higher fares as fuel costs rise

The airline forecasts a fuel bill about €2bn higher because of the Middle East conflict and says higher fares are unlikely to fully offset it.

4 news outlets reported this
Liberal2 outletsFuel shock passed on to passengers and staffCenter2 outletsRyanair weighs pay freeze as fuel bill climbsConservative0 outletslittle coverage
Published 3 min readMoney and daily life
Overview

Ryanair, Europe's largest low-cost airline, said on Monday it is considering temporary pay freezes, lower crew ratios and more use of artificial intelligence. It is reviewing its costs because jet fuel has become far more expensive since the US and Israel attacked Iran. Chief executive Michael O'Leary expects European airfares to rise by as much as 20% next year.

In a CNBC interview, speaking of higher oil prices, he said "I think they're going to get passed on in significantly higher airfares." Ryanair forecasts its fuel bill will be about €2bn higher in its financial year ending March 2028. It says higher fares are unlikely to fully offset that.

The airline expects jet fuel prices to stay elevated well into 2027 unless the conflict is resolved swiftly. It has much of its fuel needs through March bought ahead at a fixed price. Average fares in the September quarter were lower than a year earlier.

The company linked possible pay freezes to labour agreements that are maturing.

Key figures
  • up to 20% expected rise in European airfares next year, per Ryanair — The Guardian (US)
  • €2bn forecast rise in Ryanair's fuel bill, by the airline's estimate — The Guardian (US)
  • €1.61bn Ryanair post-tax profit in the quarter to September, down 6% — The Guardian (US)
  • about $196 a barrel global average jet fuel price in early November, according to ABC News — ABC News
  • 80% at $67 share of Ryanair fuel needs hedged until end of March, and the price per barrel — The Guardian (US)

Three sides of the story

Liberal2 outlets

Fuel shock passed on to passengers and staff

ABC News leads with the fare forecast, quoting O'Leary on CNBC: "I think they're going to get passed on in significantly higher airfares." It sets the story in the war's effect on jet fuel. It cites IATA figures of about $99 the day before the war began and $209 by early April.

In its own account, it puts the global average at around $196 a barrel in early November. ABC adds that airlines have dropped certain less profitable flights while charging more for tickets and baggage. The Guardian leads with the cost-cutting plans: pay freezes, lower crew ratios and more AI.

It quotes O'Leary saying European short-haul fares will rise "materially" but that this is unlikely to fully offset a €2bn higher fuel bill. It adds the hedging terms, with 80% of needs until March covered at $67 a barrel. It also gives the results: fares down 2% in the September quarter, post-tax profit of €1.61bn, down 6%, and passengers up 5% to 64.5 million.

Center2 outlets

Ryanair weighs pay freeze as fuel bill climbs

BBC News leads with the possible wage freeze and the war's effect on fuel prices. It quotes Ryanair saying prices will stay high "well into 2027" without a "swift resolution." It explains hedging as buying fuel in advance at fixed prices and says the cost of the unhedged remainder had doubled.

It reports that pre-tax profit over six months fell 16% to €2.4bn. It also recalls an earlier O'Leary remark that Europe would see "the biggest increase in airfares, I would say, in history." It says it has asked the union Unite for comment and describes the maturing labour agreements as multi-year wage deals.

The Journal's headline puts the focus on Ryanair's effort to cut costs against a higher fuel bill. It says the Dublin-based group is reviewing airport talks, expiring labor deals, crew ratios and AI use to gain efficiencies.

Conservative0 outlets

Outlets on this side gave the story little coverage.

Money and daily life

For travelers, Ryanair's chief executive expects European fares to rise by up to 20% next year as higher fuel costs are passed on, according to the airline. Ryanair also says it may impose temporary pay freezes for staff, which it ties to "maturing labour agreements." The BBC says it has asked the union Unite, which represents Ryanair employees, for comment.

All sources: 4 articles from 4 outlets

Liberal (2)

Center (2)

Brent crude and the barrel

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