Ryanair considers pay freezes and reducing crew on flights as fuel costs soar
Airline also weighs up increasing use of AI as part of cost-cutting measures to offset impact of Iran war Ryanair is considering cost-cutting measures including implementing pay freezes, reducing crew on flights and increasing the use of AI to offset soaring fuel costs because of the Middle East conflict . Europe’s biggest low-cost carrier said it expects European airlines to raise their ticket…
Ryanair, Europe's largest low-cost airline, is contemplating several cost-cutting measures due to soaring fuel costs. The airline's chief executive, Michael O'Leary, revealed that the Middle East conflict is causing jet fuel prices to rise and could remain high until 2027 if the conflict is not resolved. Ryanair anticipates European airlines raising ticket prices by up to 20% to offset the estimated €2bn increase in its fuel bill.
To address the cost, the airline is reviewing all expenses, focusing on negotiating airport churn, adjusting labor agreements, reducing crew ratios, and increasing the use of AI. Roughly 80% of Ryanair's fuel requirements until March are already hedged at $67 a barrel, while the remaining 25% for the next 12 months are hedged at $95 a barrel.
Despite a 2% year-on-year decrease in average fares, the airline expects European short-haul fares to increase substantially.
Written by urgent.news from Guardian Technology's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
