Reported by The Guardian
Airline also weighs up reducing crew on flights and increasing use of AI as part of cost-cutting measures
Ryanair has said it is considering implementing pay freezes, setting the scene for a confrontation with unions as the airline tries to offset soaring fuel costs driven by the Middle East conflict .
The airline is also considering reducing crew on numbers on flights and increasing the use of AI, in a cost-cutting drive.
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Europe’s largest low-cost carrier said it expected European airlines to raise ticket prices by up to 20% , with its own jet fuel costs forecast to rise by about €2bn (£1.6bn) in its next financial year, which ends in March 2028.
“Unless there is a swift resolution of the Middle East conflict we expect jet fuel prices to remain elevated well into 2027,” said Michael O’Leary, the chief executive of Ryanair . “While we believe European short-haul fares will increase materially to reflect these much higher jet-fuel prices and competitor capacity reductions, this is unlikely to provide a full offset for an estimated €2bn increase in our fuel bill.”
Oil prices hit a six-month high on Friday before falling to about $110 a barrel on Monday.
Ryanair expects European short-haul fares to “increase materially” next year, as fuel hedging deals taken out by airlines to reduce costs expire.
“To help address this, we’re reviewing all costs across group airlines with a particular focus on airport churn negotiations, maturing labour agreements (which may require temporary pay freezes), lower crew ratios and increased use of AI,” O’Leary said.
He said the company had several pay deals that would come up for renegotiation from March.
However, the Unite union said it had a multi-year pay deal in place that covered 2027, and in any case was not linked to company performance.
“Unite hasn’t been advised of any such proposals and we have a multi year pay deal in place which covers next year,” said Oliver Richardson, a national officer at the union. “A number of unions across Europe have the same. Our pay agreement was not attached to, nor dependent on…