Ryanair may freeze workers' pay and raise fares on higher fuel prices

Ryanair is contemplating a temporary wage freeze for its staff to offset a significant increase in fuel costs, which have skyrocketed due to the conflict between the United States and Israel with Iran. The airline anticipates fuel prices will remain elevated through 2027 unless the conflict is swiftly resolved.

Ryanair projects its fuel expenses will rise by €2 billion (£1.6 billion) in the short term, and it expects European airfares to climb to compensate for the added expense. However, the airline believes this measure alone may not suffice, and it is exploring other options, including temporary pay freezes for its employees.

The BBC has reached out to Unite, the union representing Ryanair employees, for their perspective on the matter. The airline disclosed that its pre-tax profits declined by 16% to €2.4 billion during the six months leading up to the end of September, primarily attributed to higher fuel costs. While 80% of its fuel bill has been hedged, effectively securing fixed prices, the cost of the remaining portion has doubled.

Aviation fuel prices have surged this year due to the war in the Middle East, which has drastically reduced the supply of refined products originating from the Gulf and heightened competition for those produced elsewhere. Ryanair's CEO, Michael O'Leary, stated last month that he foresees the company and other airlines raising fares by 15% to 20% next year.