Dublin, Nov 2. (PA Media/dpa/GNA) – Ryanair has said it is considering pay freezes and increased use of AI to help offset a surge in fuel costs next year.
The Dublin-based airliner said it expected jet fuel prices to “remain elevated well into 2027” because of the continued conflict in the Middle East.
The company currently has around 80 per cent of its jet fuel hedged at much lower prices than the market rate but will see this fade out following the end of the financial year.
As a result, Ryanair said it was currently predicting a jump of roughly €2 billion euros ($2.22 billion) in its fuel bill for the year to March 2028.
It said it expected European short-haul airfares to “increase materially” to reflect higher fuel prices, but this was not likely to fully offset the increase.
Bosses added that the group was therefore reviewing all costs, with a focus on areas such as labour agreements, which could lead to temporary pay freezes, and lower crewing ratios.
Ryanair would also review the “increased use of AI to drive further operational and back-office and support functions productivity.”
It came as the company revealed that profit after tax fell by 15 per cent to €2.15 billion for the half-year to September, compared with a year earlier.
Revenues increased by 3 per cent to €10.08 billion, driven by 6 per cent increase in passenger numbers.
But the firm saw operating costs lift by 10 per cent for €7.69 billion for the period.
Earlier this year, Ryanair said it would cut its traffic target for the year from 216 million passengers to 214 million in an effort to offset increases in unhedged fuel costs.
Michael O’Leary, chief executive of the business, said: “While third-quarter demand is strong, with fares trending modestly ahead of the same quarter last year, the booking window remains closer-in which reduces visibility.
“The third-quarter’s fare outcome will heavily depend on the strength of close-in October/November school mid-term and Christmas bookings.
“As is normal at this time of year, we have zero Q4 visibility. It therefore remains too early to provide meaningful full-year 2027 profit-after-tax guidance.”
GNA