Ryanair says it may freeze staff pay and expects airfares to rise sharply next summer. The airline said fares will be "materially higher" in summer 2027 because fuel costs have jumped following the US-Israel war with Iran. It expects fuel prices to stay high "well into 2027" unless there is a "swift resolution" to the conflict.
The airline forecasts its fuel bill will be €2bn (£1.6bn) higher in the short term. Chief executive Michael O'Leary said airfares would have to rise by "double-digits" to help cover the cost. He said the increase may not reach 20%, but added: "we're certainly looking at double-digit fare increases across Europe from all airlines in 2027."
Ryanair said pre-tax profits fell 16% to €2.4bn in the six months to the end of September, largely due to higher fuel costs. Fuel costs rose 15%. The company said 80% of its fuel bill was hedged, meaning bought in advance at fixed prices, but the cost of the remaining 20% is elevated.
The airline is weighing temporary pay freezes as multi-year wage deals with unions end. It said the policy could take effect from April next year. Unite, the union that represents Ryanair staff, has been contacted for comment. Ryanair also said it would expand its use of artificial intelligence in back-office and support functions.