Ryanair considers freezing staff wages and raising ticket prices. High fuel costs and regional conflicts drive these difficult financial decisions.
Ryanair faces rising costs due to global conflicts. The airline expects fuel prices to stay high until 2027. These rising expenses force the company to change its plans.
Also, the firm might freeze employee wages soon. Michael O'Leary, the company boss, suggested this move to manage costs. He also confirmed that ticket prices will likely increase next summer.
Next, the airline expects its fuel bill to jump by two billion euros. O'Leary stated that airfares must rise by double digits. This increase helps the company cover its growing fuel expenses.
However, the airline union, Unite, claims it knows nothing about these pay freeze proposals. The union says it has existing multi-year pay deals. They expect the company to honor those agreements regardless of profit.
Meanwhile, the company reported a 16 percent drop in pre-tax profits. This decline occurred during the six months ending in September. High fuel costs played a major role in this financial dip.
After that, the airline decided to slow down its hiring process. It also plans to use more artificial intelligence. The company will use this technology in back office and support roles.
Then, the carrier started cutting its winter flight schedule. Officials expect these flight reductions to last through the summer of 2027. Short-haul travel capacity will likely remain limited for several years.
Finally, the airline industry faces widespread supply issues. Conflict in the Gulf region reduced the supply of refined fuel products. This causes higher competition and prices for all airlines across Europe.