Ryanair may freeze workers’ pay and raise fares on higher fuel prices

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Ryanair may freeze workers’ pay and raise fares on higher fuel prices

Raynair planeImage source, Getty Images
ByMitchell LabiakBusiness reporter and Theo LeggettBusiness correspondent
  • Published

Ryanair is considering a temporary wage freeze for staff to pay for a sharp rise in its fuel costs which have surged following the US-Israel war with Iran.

The carrier said it expects fuel prices to remain high “well into 2027” unless there is a “swift resolution” to the conflict.

Ryanair said its fuel bill is forecast to be €2bn (£1.6bn) higher in the short-term and said it expects European airfares to increase to help cover the cost.

But it said that was unlikely to be enough and, among a number of measures, it is looking into “temporary pay freezes”. The BBC has contacted Unite, the union which represents Ryanair employees, for comment.

The airline said its pre-tax profits fell by 16% to €2.4bn during the six months to the end of September, largely due to higher fuel costs.

Ryanair said that although 80% of its fuel bill had been “hedged” – in effect, bought in advance at fixed prices – the cost of the remainder had doubled.

Aviation fuel prices have surged this year as a result of the war in the Middle East, which has dramatically reduced the supply of refined products coming from the Gulf and increased competition for those produced elsewhere.

Ryanair’s chief executive, Michael O’Leary, said last month he expects the firm and other airlines to increase fares by 15% to 20% next year.

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