By Salma El-Sakka
Ryanair is reviewing potential pay freezes and increased use of artificial intelligence to counter a predicted surge in jet fuel costs, the Dublin-based airline announced on Tuesday.
Fuel cost surge prompts review
The carrier expects jet fuel prices to remain elevated well into 2027 due to the ongoing conflict in the Middle East. While about 80% of its fuel is currently hedged at lower rates, that protection will fade after the financial year ends, leading to a projected increase of roughly €2 billion (£1.7 billion) in its fuel bill for the year to March 2028.
Chief executive Michael O’Leary told Sky News that European short-haul fares are likely to see “double-digit” price increases next year as higher fuel costs are passed to travellers. He added that higher fares alone will not be enough, prompting a review of all costs including airport charges, aircraft costs, labour agreements and crewing ratios.
Profit falls despite revenue growth
For the half-year to September, profit after tax fell 15% to €2.15 billion (£1.79 billion) compared with the same period a year earlier. Revenues rose 3% to €10.08 billion (£8.41 billion), driven by a 6% increase in passenger numbers, but operating costs climbed 10% to €7.69 billion (£6.42 billion).
Earlier this year Ryanair cut its full-year traffic target from 216 million to 214 million passengers to offset unhedged fuel costs. O’Leary noted that third-quarter demand remains strong, though the booking window is shorter, reducing visibility for the remainder of the year.
