Ryanair says it may freeze workers' pay and raise airfares
Ryanair is considering a temporary wage freeze for staff and confirmed airfares will be "materially higher" next summer because of a sharp rise in fuel costs following the US-Israel war with Iran.
TL;DR
- Ryanair considering temporary wage freeze for staff.
- Airfares expected to be "materially higher" next summer due to rising fuel costs.
- Fuel prices expected to remain high into 2027 due to US-Israel war with Iran.
- Ryanair's fuel bill forecast to be €2bn higher in the short-term.
- Chief executive Michael O'Leary stated airfares would need "double-digit" increases.
- Pre-tax profits fell 16% to €2.4bn for the six months to September, largely due to a 15% jump in fuel costs.
- Company hedging 80% of its fuel bill, but the remaining cost is elevated.
- O'Leary reiterated earlier forecasts of needing a "20% fare increase" to cover jet fuel costs.
- Ryanair weighing pay freezes as labor agreements end, potentially from April next year.
- Increased use of artificial intelligence in back office and support functions planned.
- Ryanair cutting back on winter flights, with more reductions expected.
- Short-haul capacity expected to remain constrained out to the early 2030s.