Ryanair says it may freeze workers' pay and raise airfares

Ryanair is considering a temporary wage freeze for staff and confirmed airfares will be materially higher next summer following a sharp rise in fuel costs driven by the US-Israel war with Iran. Chief executive Michael O’Leary said short-haul capacity will remain constrained.

Airlines across Europe face surging jet fuel bills as the conflict in the Middle East restricts the supply of refined products coming from the Gulf and intensifies competition for supplies elsewhere. According to Ryanair, the airline expects fuel prices to remain high well into 2027 unless a swift resolution to the conflict occurs.

Fuel Costs and Profit Declines at Ryanair

Ryanair reported that its pre-tax profits fell by 16% to €2.4bn during the six months leading to the end of September. The drop was largely driven by a 15% jump in fuel costs. Although 80% of the airline’s fuel bill was hedged—meaning it was bought in advance at fixed prices—the remaining unhedged portion faced heavily elevated costs.

The airline estimates its short-term fuel bill will be €2bn, or roughly £1.6bn, higher than usual. Chief executive Michael O’Leary reiterated earlier forecasts that the carrier would need a 20% fare increase to fully cover jet fuel expenses. While expressing uncertainty about reaching that exact threshold, O’Leary noted that double-digit fare increases are expected across Europe from all airlines in 2027.

Potential Pay Freezes and Union Responses

To help contain rising operational expenses, Ryanair is investigating temporary pay freezes for staff as maturing labour agreements come to an end. The policy could be implemented starting in April of next year, alongside a slowdown in hiring as costs mount.

Unite, the union representing Ryanair staff, responded to the proposals by stating it had not been advised of any such plans. Oliver Richardson, a national officer at Unite, noted that the union has a multi-year pay deal in place covering next year, adding that similar agreements exist with multiple unions across Europe.

Our pay agreement was not attached to, nor dependent on company performance. This was something that the Ryanair was at pains to emphasise. As such we would expect it to be honoured.
Oliver Richardson, national officer at Unite

Flight Cuts and Technological Adjustments

Beyond reviewing labor costs and airfares, Ryanair has scaled back its winter flight schedule, with additional reductions announced. O’Leary indicated that capacity cuts will likely persist into the summer of 2027, projecting that short-haul capacity across the broader airline industry will remain constrained out to the early 2030s.

To further mitigate financial pressures, the airline confirmed plans to increase its reliance on artificial intelligence within its back office and support functions.