Ryanair weighs pay freezes as fuel bill set to rise by €2 billion

Ryanair is considering temporary pay freezes and other cost-cutting measures as it faces an expected €2 billion increase in its fuel bill in the financial year beginning in April 2027, the Irish airline said on Monday.

Ryanair is considering temporary pay freezes and other cost-cutting measures as it faces an expected €2 billion increase in its fuel bill in the financial year beginning in April 2027, the Irish airline said on Monday.

The company said higher airfares were unlikely to fully offset the projected increase, which is based on current forward fuel prices.

Ryanair chief executive Michael O’Leary said jet fuel prices were expected to remain elevated well into 2027 unless the conflict in the Middle East was resolved quickly.

The airline is reviewing costs across its operations. Possible measures include temporary pay freezes under labour agreements, reducing the number of crew on flights and expanding the use of artificial intelligence in back-office and support functions. It is also looking at negotiations with airports to reduce charges.

No decisions on the proposed measures have been announced.

Ryanair reported after-tax profit of €2.15 billion for the six months to September 30, down 15 percent from €2.54 billion in the same period a year earlier. Revenue rose 3 percent, while average fares fell 4 percent to €57.50.

The airline said 80 percent of its fuel needs through March 2027 were hedged at about $67 a barrel, protecting it from much of the recent rise in prices. For the following financial year, it had hedged 25 percent of its fuel needs at about $95 a barrel.

The cost of the unhedged portion of its fuel requirements has almost doubled, adding to pressure on the airline’s finances.

O’Leary said he expected European airlines to raise fares by double-digit percentages in 2027 as fuel hedges expire and carriers face higher costs. He said Ryanair would need fares to rise by about 20 percent to offset its projected increase in fuel expenses, although he was not certain the company would achieve that level.

Ryanair also expects some rival airlines to reduce capacity, which could put further upward pressure on fares.

The airline said fuel prices were likely to remain high well into 2027 unless the conflict in the Middle East was resolved swiftly.