Ryanair says higher fares on the table as fuel costs rise

Ryanair is considering a temporary pay freeze for its staff as it looks to absorb a steep rise in fuel costs linked to the US-Israel war with Iran, the airline has said.

The carrier warned that fuel prices are likely to stay elevated “well into 2027” unless the conflict is swiftly resolved. It forecasts its fuel bill will be around €2bn (£1.6bn) higher in the short term, and expects European airfares to rise to help cover the extra expense. However, Ryanair acknowledged that higher fares alone would probably not be enough, and said it is exploring several measures, including the temporary wage freezes. The BBC has asked the Unite union, which represents Ryanair employees, for comment.

The airline reported that pre-tax profits fell 16% to €2.4bn in the six months to the end of September, largely because of increased fuel expenses. Although around 80% of its fuel requirements had been “hedged”, meaning bought in advance at fixed prices, the cost of the remaining 20% has doubled.

Aviation fuel prices have jumped this year as the Middle East conflict sharply cut the supply of refined products from the Gulf and intensified competition for those produced elsewhere.

via BBC