Ryanair is considering a temporary pay freeze for its staff to offset a sharp rise in fuel costs. The airline said fuel prices linked to the US-Israel war with Iran have surged.
The carrier expects fuel prices to stay high "well into 2027" unless there is a "swift resolution" to the conflict. It forecasts its fuel bill will be €2bn (£1.6bn) higher in the short term.
Ryanair said it expects European airfares to rise to help cover the costs. It also said that higher fares alone are unlikely to be enough. Among other measures, it is looking into "temporary pay freezes" as "maturing labour agreements," or multi-year wage deals with unions, come to an end. The BBC has contacted Unite, the union that represents Ryanair employees, for comment.
Pre-tax profits fell 16% to €2.4bn in the six months to the end of September, according to the airline. It attributed the drop largely to higher fuel costs, which rose 15%. Ryanair said 80% of its fuel bill had been "hedged," meaning bought in advance at fixed prices, but the cost of the remainder had doubled.
Chief executive Michael O'Leary said last month he expects Ryanair and other airlines to raise fares by 15% to 20% next year. He said: "You're going to see the biggest increase in airfares, I would say, in history in Europe in the next 12 months." He added: "The question is, will that increase in airfares be enough to cover the dramatically higher oil bills? I don't think it will be."
Ryanair also said it will increase its use of artificial intelligence in its back office and support functions.