Ryanair may freeze workers' pay and raise fares on higher fuel prices — SkimNews
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- Ryanair expects its fuel bill to be €2bn higher in the short term due to the Middle East war, which has disrupted Gulf fuel supplies and driven up costs.
- Ryanair reported a 16% drop in pre-tax profits to €2.4bn for the six months to September, attributing the decline primarily to soaring fuel expenses.
- Ryanair said 80% of its fuel is hedged at fixed prices, but the uncovered 20% has seen costs double, leaving the airline exposed to current market spikes.
- Ryanair is considering temporary pay freezes for staff as one of several measures to offset rising costs, alongside expected fare increases of 15% to 20% next year.
- Ryanair warned that European airfares will rise across the industry to help cover fuel costs, though this may not fully offset the financial impact.
- Michael O'Leary, Ryanair's CEO, stated the airline expects high fuel prices to persist 'well into 2027' unless the US-Israel war with Iran ends swiftly.
Why it matters: Ryanair’s €2bn fuel cost surge directly threatens worker compensation and consumer prices, with a 16% profit drop already realized. The airline’s need to impose pay freezes and raise fares by up to 20% reflects a material shift in operating costs that redistributes financial pressure onto employees and travelers alike.
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