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Ryanair warns fares will rise by double digits and considers pay freezes over a €2bn Iran war fuel hit

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's half-year profits fell 15 per cent to €2.15 billion as surging jet fuel costs driven by the US-Iran war battered the airline's finances. Chief executive Michael O'Leary said a full 20 per cent fare rise would be needed to cover a projected €2 billion jump in the fuel bill for the year to March 2028, but predicted the market would bear only "double-digit" increases. Unions in Ireland, Britain, Spain and Portugal face pay freezes if deals are not struck before April 2027.

O'Leary pledged to add aircraft and two million seats at Dublin Airport in 2027 if the Irish Aviation Authority cuts its charges.

Ryanair currently has around 80 per cent of its fuel hedged at lower prices, but that protection fades after this financial year.

'We will have to do whatever we can to survive this,' O'Leary said, as the airline also reviews AI use to slash back-office costs.

MoreBBC News - BusinessRyanair says it may freeze workers' pay and raise airfaresThe IndependentRyanair looks to AI to curb soaring jet fuel costsIrish TimesO’Leary commits to Ryanair expansion in Dublin next year but says air fares will riseThe HeraldRyanair to review pay freezes and AI use to counter jet fuel price surgeThe TelegraphRyanair considers pay freeze in wake of BudgetAOL News UKRyanair issues major jet fuel warning 'well into 2027'APRyanair CEO anticipates European airfare prices up as much as 20% next year as jet fuel prices rise
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