Ryanair may freeze staff pay and use AI to offset a €2bn fuel surge, warning fares will rise next year
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.
Michael O'Leary warned that double-digit fare increases across all European airlines in 2027 are now certain, driven by jet fuel prices more than doubling to $196.70 per barrel since the US-Israel war with Iran began. Ryanair's pre-tax profits fell 16% to €2.4bn in the six months to September, with fuel costs jumping 15% even after 80% of supply was hedged at $67 a barrel.
O'Leary said Ryanair needs a 20% fare rise to cover its fuel bill — but admitted 'I'm not sure we'll get to 20%.'
Pay freezes could kick in from April 2027 as multi-year union agreements expire and crew ratios are cut.
Ryanair's rivals are in a far weaker position: O'Leary warned earlier this year that some European competitors could collapse under the cost pressure.
