Ryanair Mulls Pay Freeze and Fare Hikes Amid Fuel Surge
Ryanair warns of a temporary wage freeze for staff and higher ticket prices as fuel costs soar.
Whoa! Ryanair has announced that it is looking at “temporary pay freezes” for its workforce as it battles a sharp jump in fuel costs.
The carrier says its fuel bill is expected to be €2 billion higher in the short term, a surge linked to the US‑Israel war with Iran that has pushed aviation fuel prices up dramatically.
Even though 80% of its fuel has been hedged at fixed prices, the remaining portion has doubled, forcing the airline to consider drastic measures.
Ryanair also warned that European airfares are likely to increase to help cover the extra expense, and CEO Michael O'Leary has predicted fare hikes of 15% to 20% next year.
Despite these steps, the airline admits that higher fares alone may not be enough, prompting the exploration of wage freezes as part of a broader cost‑cutting plan.
Financially, Ryanair’s pre‑tax profit slipped 16% to €2.4 billion for the six months ending September, a decline the company attributes largely to the fuel price shock.
The airline expects fuel prices to stay elevated “well into 2027” unless a swift resolution to the conflict is achieved.
The BBC has reached out to Unite, the union representing Ryanair staff, for comment on the proposed pay freeze.
In summary, Ryanair faces a perfect storm of soaring fuel costs, reduced profit margins, and the prospect of higher ticket prices and temporary wage freezes for its employees.
