Ryanair Weighs Pay Freezes and AI to Offset €2bn Fuel Cost Rise
Ryanair is reviewing temporary pay freezes, lower crew ratios and more AI to offset an estimated €2bn fuel bill rise, setting up a possible union clash.
The story in focus
Ryanair is considering temporary pay freezes, reduced crew ratios and greater use of AI to offset an estimated €2bn rise in jet fuel costs, The Guardian reported. CEO Michael O'Leary cited elevated fuel prices into 2027 and slowing hiring. Quarterly post-tax profit fell 6% to €1.61bn as passengers rose 5% to 64.5 million.
- Ryanair forecasts its jet fuel costs to rise by about €2bn in the financial year ending March 2028.
- CEO Michael O'Leary said jet fuel prices are expected to stay elevated well into 2027 without a swift resolution of the Middle East conflict.
- The airline is reviewing temporary pay freezes, lower crew ratios, airport churn negotiations and increased AI use.
- Post-tax profit for the quarter ending September was €1.61bn, down 6% year on year, while passengers rose 5% to 64.5 million.
- Unite said it has a multiyear pay deal covering 2027, was not advised of the proposals and expects it to be honoured.
Cost measures under review
Ryanair said it is reviewing all costs across its group airlines, with a focus on airport churn negotiations, maturing labour agreements that may require temporary pay freezes, lower crew ratios and increased use of AI. O'Leary said several pay deals come up for renegotiation from March.
O'Leary also said Ryanair is slowing hiring meaningfully for new pilots, cabin crew and training courses. The airline said expanded AI use would target productivity in operations and back-office functions; O'Leary said AI had already helped increase capacity by 4%.
Fuel and fares
Ryanair expects European airlines to raise ticket prices by up to 20%, with its own fuel bill forecast to rise by about €2bn in the financial year ending March 2028. O'Leary said elevated jet fuel prices are expected to persist well into 2027 unless the Middle East conflict is resolved swiftly.
The airline said 80% of fuel requirements until the end of March are hedged at $67 a barrel, while 25% for the following 12 months are hedged at $95. It expects European short-haul fares to increase materially next year as hedging deals expire, but said this is unlikely to fully offset the fuel increase.
Union response and results
Unite national officer Oliver Richardson said the union had not been advised of any such proposals and has a multiyear pay deal covering next year that is not linked to company performance. He said the union expects the agreement to be honoured.
Ryanair reported post-tax profit of €1.61bn for the quarter ending September, down 6% year on year and in line with analyst expectations. Passenger numbers rose 5% to 64.5 million, while average fares fell 2%. The airline said it will take delivery of Boeing 737 Max 10 aircraft in January.
What cost measures is Ryanair reviewing to offset higher fuel costs?
Ryanair is reviewing temporary pay freezes under maturing labour agreements, lower crew ratios, airport churn negotiations and increased AI use, while slowing hiring, to offset an estimated €2bn rise in jet fuel costs.
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