Ryanair says it may freeze staff pay and raise airfares next summer. The airline is considering a temporary wage freeze, and it confirmed that airfares will be "materially higher" in 2027 because of a sharp rise in fuel costs following the US-Israel war with Iran.
Ryanair expects fuel prices to stay high "well into 2027" unless there is a "swift resolution" to the conflict. The airline forecasts its fuel bill will be €2bn (£1.6bn) higher in the short term.
Chief executive Michael O'Leary said airfares would need to rise by "double-digits" to help cover the cost. He added: "I'm not sure we'll get to 20%," but said "we're certainly looking at double-digit fare increases across Europe from all airlines in 2027."
The company said that 80% of its fuel bill has been "hedged," meaning bought in advance at fixed prices. The cost of the remaining 20% is elevated.
Pre-tax profits fell 16% to €2.4bn in the six months to the end of September, according to the airline. Ryanair attributed the drop largely to higher fuel costs, which rose 15%.
Ryanair also said it is weighing a freeze on pay as "maturing labour agreements," or multi-year wage deals with unions, expire. The policy could start in April next year. Unite, the union representing Ryanair staff, has been contacted for comment.
The airline also said it will expand its use of artificial intelligence in back-office and support functions. It has cut winter flights and said more cuts will follow. O'Leary said those cuts will continue into summer 2027 and that short-haul capacity will remain constrained into the early 2030s.