Ryanair says it may freeze workers' pay and raise airfares — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Ryanair confirmed airfares will be "materially higher" next summer and forecast its fuel bill €2bn (£1.6bn) higher in the short term, expecting fuel prices to stay high "well into 2027" absent a "swift resolution" to the US-Israel war with Iran that cut Gulf refined-product supply.
- Michael O'Leary said Europe will see double-digit fare increases from all airlines in 2027, reiterating his earlier forecast that jet fuel costs require a 20% fare rise.
- Ryanair is weighing a temporary staff pay freeze that could be implemented from April next year as multi-year union wage deals come to an end, and said it will slow hiring.
- Ryanair reported pre-tax profits down 16% to €2.4bn for the six months to end-September, largely because fuel costs jumped 15% even though 80% of its fuel bill was hedged.
- Unite said it has not been told of any pay-freeze proposal and that its multi-year pay deal covering next year is not tied to company performance; national officer Oliver Richardson said the agreement should be honoured.
- Ryanair has cut back on winter flights and said on Monday that more cuts are coming, with O'Leary expecting the industry-wide trimming — particularly among short-haul carriers — to continue into summer 2027 and short-haul capacity to stay constrained into the early 2030s.
- Ryanair also said it will increase its use of artificial intelligence across its back office and support functions.
Why it matters: Ryanair's fuel bill is forecast €2bn higher in the short term even with 80% of fuel hedged, and pre-tax profits are already down 16% to €2.4bn. A pay freeze from April next year runs into Unite's position that its multi-year deal covers next year and is not performance-linked — and Unite says it has not been told of any such proposal.
Ask SkimNews
