Ryanair says it may freeze workers' pay and raise airfares

What the report says

Ryanair says it is weighing a temporary freeze on staff pay and expects ticket prices to rise next summer as higher fuel costs pressure the airline’s finances. According to the company, the increase in aviation fuel costs follows the conflict involving the US, Israel and Iran, and it expects elevated fuel prices to persist well into 2027 unless there is a swift de-escalation.

The airline said its short-term fuel bill could be about €2bn higher and that fares may need to rise by double digits to help absorb the cost. Chief executive Michael O’Leary said the company is also likely to slow hiring. Ryanair added that it is considering pay freezes as current labour agreements near expiry, with any change potentially starting from April next year.

The company also reported a 16% drop in pre-tax profit to €2.4bn for the six months to the end of September, citing a 15% rise in fuel costs. It said about 80% of its fuel needs were hedged, but the remaining portion was more expensive. Ryanair said it has already reduced winter flights and expects industry-wide capacity constraints to continue for some time.

Unite, the union representing Ryanair staff, said it had not been informed of any such pay-freeze proposal and said existing agreements should be honoured. More broadly, the case highlights how fuel-price shocks can affect airline pricing, staffing plans and route capacity across the sector.