Ryanair considers pay freezes and reducing crew on flights as fuel costs soar
Airline also weighs up increasing use of AI as part of cost-cutting measures to offset impact of Iran war
TL;DR
- Ryanair is considering pay freezes, reducing crew on flights, and increasing AI use to offset soaring fuel costs.
- Europe's biggest low-cost carrier expects European airlines to raise ticket prices by up to 20%.
- Jet fuel costs are anticipated to increase by about €2 billion in Ryanair's next financial year.
- Oil prices hit a six-month high last Friday, impacting fuel costs.
- Ryanair's fuel requirements through March 2028 are 80% hedged at $67 a barrel and 25% hedged at $95 a barrel for the following 12 months.
- Average fares fell by 2% year-on-year in the quarter ending September, with current quarter fare outcomes depending on close-in bookings.
- The airline reported a post-tax profit of €1.61bn for the quarter ending September, a 6% year-on-year decrease.