Ryanair considers staff pay freeze as conflict drives up fuel costs

Ryanair is considering a temporary pay freeze for its employees to offset a sharp increase in fuel expenses, the BBC reported on Monday. The budget airline stated that its fuel costs could increase by 2 billion euros, or 1.6 billion pounds, in the short term as a result of the ongoing US-Israel war with Iran. According to the BBC, Ryanair expects fuel prices to stay elevated well into 2027 unless the conflict achieves a swift resolution. [1]

To cover the escalating expenses, the carrier expects European airfares to rise, but it warned that higher ticket prices alone will not be sufficient. The BBC reported that the airline is examining several measures, including the potential wage freeze. The BBC has reached out for comment to Unite, the labor union representing Ryanair employees. [1]

The latest announcement follows earlier warnings about regional aviation costs. As FTMQ News reported earlier, Ryanair chief executive Michael O'Leary previously warned that European airfares could rise by up to 20 percent in 2027 due to surging jet fuel costs driven by Middle East conflict. FTMQ News also reported previously that while O'Leary expected no physical shortages of European jet fuel through summer 2027, high prices were expected to persist for 12 to 18 months. [4][5]

Ryanair operates a business model focused on ultra-low base fares supported by ancillary revenues from optional services such as seat selection, checked baggage, and onboard sales. Headquartered in Swords, County Dublin, the airline maintains a standardized fleet of more than 640 Boeing 737 aircraft. [3]