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Ryanair may freeze workers’ pay as fuel prices spike
Ryanair is considering a temporary pay freeze for staff as it faces a sharp increase in fuel costs linked to the US-Israel war with Iran. The airline says higher fares may help cover the extra expense, but are unlikely to be sufficient on their own.
It forecasts its fuel bill will be €2bn (£1.6bn) higher in the short term and says prices could remain high well into 2027 without a swift resolution to the conflict. Although 80% of its fuel was bought in advance at fixed prices, the cost of the rest has doubled. Ryanair’s pre-tax profits fell 16% to €2.4bn in the six months to the end of September, and its chief executive expects fares to rise by 15% to 20% next year.
In short
- Ryanair is weighing temporary staff pay freezes.
- Its short-term fuel bill is forecast to rise by €2bn.
- The airline expects fares to increase next year.
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The strongest fair case each way — we don't pick a winner.
The case for
A temporary pay freeze could help Ryanair manage an exceptional rise in fuel costs while protecting its ability to keep operating and preserve jobs. The company has already hedged most of its fuel, but says the remaining costs have doubled and higher fares alone may not cover the increase; sharing some of the short-term pressure with staff could be seen as a way to limit further fare rises or job cuts.
The case against
Workers could argue that they should not bear the cost of a crisis beyond their control, particularly when the company reported €2.4bn in pre-tax profits in the first half of the year. With fares forecast to rise by 15% to 20%, freezing pay could also reduce staff’s real incomes as travel and other living costs rise, while leaving employees to absorb losses without a clear guarantee that the measure is temporary or that gains will later be shared.
Explained simply
Ryanair is a low-cost airline based in Ireland that carries passengers across Europe and beyond. Fuel is one of an airline’s major costs, and sudden price rises can put pressure on its finances.
Airlines can buy fuel in advance at agreed prices to reduce the risk of sudden increases; Ryanair says it secured fixed prices for most of its fuel, but the remainder has become more expensive. Higher fares and staff pay are among the costs the company may weigh as it responds, while changes to its finances can affect passengers and employees.