Ryanair may freeze staff pay and increase airfares as fuel costs rise
The airline is considering temporary wage freezes and higher ticket prices to manage a projected €2bn increase in fuel expenses.
Ryanair is considering temporary pay freezes for its staff and raising airfares to manage a sharp increase in fuel costs, according to BBC News. The airline stated that fuel prices are expected to remain high until 2027 unless the US-Israel war with Iran reaches a swift resolution.
The carrier reported that its fuel bill is forecast to be €2bn higher in the short term. While 80 per cent of its fuel has been hedged, the cost for the remaining portion has doubled.
Pre-tax profits for the airline fell by 16 per cent to €2.4bn during the six months ending in September. This decline was largely attributed to a 15 per cent jump in fuel costs.
Chief Executive Michael O'Leary previously suggested that European airfares could rise by 15 per cent to 20 per cent next year. O'Leary expressed doubt that such fare increases would be sufficient to cover the higher oil bills.
The airline is looking into pay freezes as multi-year labour agreements with unions conclude. It also plans to increase the use of artificial intelligence in its support functions and back office.