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Ryanair may freeze staff pay and cut crew on flights as Iran war sends its fuel bill soaring by £1.6bn

Ryanair hedged 80 per cent of its fuel at €67 a barrel until March 2027, but the unhedged 20 per cent contributed to a ten per cent rise in costs.
Ryanair hedged 80 per cent of its fuel at €67 a barrel until March 2027, but the unhedged 20 per cent contributed to a ten per cent rise in costs.

Ryanair chief executive Michael O'Leary warned on Monday that a €2bn (£1.6bn) surge in fuel costs driven by the US-Iran war will force European airlines to raise short-haul fares by up to 20% next year, while Ryanair itself may still fall short of covering the full bill. The airline posted a 15% fall in half-year profits to €2.15bn as jet fuel prices more than doubled to $196.70 a barrel.

O'Leary warned rivals — many with weaker hedging than Ryanair's 80% lock-in at $67 a barrel — could collapse under the cost pressure.

Ryanair flew 125.8 million passengers in the six months to September, up 6%, but average fares fell 4% to €57.50 as the Iran conflict spooked holidaymakers.

The airline's planned cost review includes renegotiating airport deals and using AI to cut back-office costs, alongside the threatened pay freeze.

MoreDaily MailRyanair warns of higher ticket prices as fuel bill soarsThe GuardianRyanair considers pay freezes and reducing crew on flights as fuel costs soarBBC News - BusinessRyanair may freeze workers' pay as fuel prices spikeEvening StandardRyanair to review pay freezes and AI use to counter jet fuel price surgeCity A.M.Ryanair resorts to AI cost-cutting to swallow higher jet fuel costsReutersRyanair says it might freeze pay, cut other costs to offset high fuel pricesmarketscreener.comRyanair says it might freeze pay to offset high fuel prices - marketscreener.comIrish TimesRyanair weighs cost cuts to counter high fuel bills
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