Ryanair weighs cost cuts to counter high fuel bills

Ryanair is considering possible pay freezes and cost cuts to counter high fuel prices sparked by the US-Iran war, chief executive, Michael O’Leary, said on Monday.

Profits at the airline fell 15 per cent in the six months to September 30th to €2.15 billion, from €2.54 billion during the same period last year, as costs rose and fares fell.

O’Leary warned that rising air fares next year would be unlikely to fully offset the projected €2 billion increase in fuel bills that the airline faces in its next financial year, which begins on April 1st 2027.

Ryanair is reviewing all costs across the group, including airports, maturing labour deals, which could require pay freezes, lower crewing ratios and increased use of artificial intelligence in back-office and support, he said.

“Unless there is a swift resolution of the Middle East conflict, we expect jet-fuel prices to remain elevated well into 2027,” O’Leary predicted.

Ryanair has hedged 80 per cent of its fuel at $67 a-barrel up to March 31st, but a doubling in the cost of the unhedged 20 per cent contributed to a 10 per cent increase in costs over the six months to September 30th.

Revenue rose 3 per cent during the six month period, the first half of Ryanair’s financial year, but average fares dipped 4 per cent to €57.50, the airline said on Monday.