Ryanair Reviews Costs as Fuel Surge Threatens Higher Fares and Pay Freezes

Ryanair's fuel squeeze is already showing up in its earnings. First-half profit fell 15% to €2.15 billion from €2.54 billion a year earlier, according to nu.nl.

Passenger growth was not enough to offset higher fuel costs and lower fares, Euronews reported. That leaves the airline reviewing spending while warning passengers that tickets could become more expensive.

On November 2, elEconomista.es reported the profit decline for the first half of Ryanair's fiscal year 2027. The report attributed the fall to more expensive jet fuel.

The same day, Express & Star reported that the Dublin-based airline expected its fuel bill to rise by roughly €2 billion for the year to March 2028. Its review includes possible pay freezes and greater use of artificial intelligence.

The potential savings extend to staffing on aircraft. The Guardian reported on November 2 that Ryanair was considering reducing crew on flights as part of measures to offset the impact of the Iran war.

CEO Michael O'Leary also warned of higher ticket prices. Speaking to CNBC, he said European airlines could face airfares up to 20% higher in 2027 as fuel costs rise.

Expiring fuel hedges are part of the pressure, according to Quartz. Its November 2 report linked the warning about higher European airfares to those hedges running out.

The staffing measures remain proposals, not confirmed changes. The Guardian described pay freezes, reduced crew numbers and increased use of AI as options under consideration. O'Leary's fare warning was also a projection, rather than an announced increase across Ryanair's tickets.

The coverage describes the timing of the fuel hit differently. Express & Star puts the roughly €2 billion increase in the year to March 2028, while the BBC describes a possible €2 billion rise in 2028 unless the US-Israel war with Iran ends. Separately, CNBC places O'Leary's warning about higher fares in 2027.

The next decisions are which savings Ryanair adopts and how much of the fuel increase it passes to passengers. The review reported by Express & Star leaves pay freezes and expanded AI use unresolved, while CNBC reports a fare warning of up to 20%, not a fixed increase.

Fuel costs also remain tied to the course of the conflict. The BBC reported that the airline's warning about the increase depends on whether the US-Israel war with Iran ends.