Ryanair Increases Airfares and Considers Pay Freeze

Ryanair has increased airfares for next summer and is currently considering a temporary pay freeze for its staff. The decisions are a result of the high cost of jet fuel due to the U.S.-Israel war with Iran.

Increased airfares

Ryanair is expecting fuel costs to remain high “well into 2027” unless there is a “swift resolution to the conflict”.

The airline said its fuel bill is forecast to be 2 billion euros higher in the short term. Ryanair CEO Michael O’Leary reiterates forecasts from earlier this year that say the airline would “need a 20% fare increase” to cover the cost of jet fuel.

O’Leary said:

“I’m not sure we’ll get to 20%, but we’re certainly looking at double-digit fare increases across Europe from all airlines in 2027.”

At the same time, Ryanair has already cut back on winter flights.

Potential workers’ pay freeze

However, the airline said the increase in airfare is unlikely to cover the high cost of fuel and that it will consider a workers’ pay freeze.

Ryanair said it’s considering this partly because “maturing labour agreements” – multi-year wage deals with unions – are coming to an end, and the policy could be implemented from April next year.

Oliver Richardson, national officer at Unite, the union representing Ryanair staff, said the union “hasn’t been advised of any such proposals and we have a multi-year pay deal in place which covers next year. Several Unions across Europe have the same.

He continues:

“Our pay agreement was not attached to, nor dependent on company performance. This was something that the Ryanair was at pains to emphasise. As such we would expect it to be honoured.”

Ryanair also said it would slow down hiring and increase its use of artificial intelligence within its back office and support functions.