Ryanair is considering measures to mitigate the impact of rising fuel costs on its business. The airline's fuel bill is expected to increase by €2bn due to the surge in fuel prices caused by the US-Israel war with Iran.
What happened
The airline has announced that it may implement a temporary wage freeze for staff and raise airfares to help cover the increased fuel costs. Ryanair's pre-tax profits fell by 16% in the six months to September, largely due to a 15% jump in fuel costs. The company's boss, Michael O'Leary, stated that airfares would need to rise by "double-digits" to help cover the cost.
The airline has also slowed down hiring as its costs rise. Additionally, Ryanair is weighing up whether to freeze pay as multi-year wage deals with unions come to an end. The policy could be implemented from April next year. However, the union representing Ryanair staff, Unite, said it had not been told of "any such proposals" and expects the company to honor its existing pay agreement.
Ryanair has cut back on winter flights and expects to make further cuts, a trend that is happening across the airline industry, particularly with short-haul carriers. The company believes that short-haul capacity will remain constrained until the early 2030s.
