Business · Companies · 26 mins ago
Ryanair plans cost cuts as fuel bill set to rise by €2bn
Ryanair plans company-wide cost cuts to offset an expected €2bn increase in fuel costs next year.
The Irish airline said it will review airport deals and may reduce the number of crew members on board and use more artificial intelligence.
Net profit fell 15% in the six months to September, to €2.15bn from €2.54bn a year earlier.
Higher fuel costs and lower ticket prices contributed to the decline, even as passenger numbers rose 6% to 125.8 million.
Fuel prices have risen sharply amid the conflict in the Middle East, and Ryanair expects them to remain high into 2027 if the conflict continues.
The airline is weighing further savings, including possible pay freezes, as it tries to manage costs while ticket prices are under pressure.
Ryanair is considering cost cuts as it forecasts a €2bn rise in its fuel bill for the coming financial year.
Possible measures include temporary pay freezes, fewer crew on flights, reviews of airport contracts and greater use of AI.
The airline expects fuel prices to remain high well into 2027 unless the Middle East conflict is resolved swiftly.
Ryanair expects European short-haul fares to rise materially, but says higher fares are unlikely to cover the full increase in fuel costs.
The airline reported a 6% year-on-year fall in quarterly post-tax profit to about €1.6bn.
- Who
- Ryanair, Europe’s largest airline by passenger numbers.
- What
- It is considering cost cuts to address an expected €2bn rise in its fuel bill.
- When
- The fuel-cost increase is expected in the next financial year, ending in March 2028.
- Where
- Ryanair is headquartered in Ireland; the company announced the results in Dublin.
- Why
- The Middle East conflict has driven up fuel costs, which Ryanair expects to remain high well into 2027.
This story does not have two clearly opposing sides.
Ryanair reported a 6% year-on-year fall in quarterly post-tax profit to about €1.6bn.
Ryanair expects its fuel costs to rise by about €2bn.
Ryanair expects fuel prices to remain elevated unless the Middle East conflict is resolved swiftly.
- Expected fuel-cost increase
- About €2bn
- Financial year end
- March 2028
- Quarterly post-tax profit
- €1.61bn, down 6% year on year
- Quarterly passenger numbers
- 64.5 million, up 5% year on year
- Current fuel hedging
- 80% hedged at $67 a barrel through the end of March
- Next 12 months' fuel hedging
- 25% hedged at $95 a barrel
13 sources
Airline ticket prices will go up next year says Ryanair as it reveals its fuel bill will rise by £1.6bn
Ryanair considers pay freezes and reducing crew on flights as fuel costs soar
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What people are saying
Unless there is a swift resolution of the Middle East conflict we expect jet fuel prices to remain elevated well into 2027
While we believe European short-haul fares will increase materially to reflect these much higher jet-fuel prices and competitor capacity reductions, this is unlikely to provide a full offset for an estimated €2bn increase in our fuel bill.
Alles steht zur Diskussion – von Lohnstopps bis hin zu anderen Bereichen
Wir müssen uns wohl darauf einstellen, dass das Ölpreisniveau in den kommenden zwölf Monaten hoch bleiben wird; wir werden also den Gürtel enger schnallen müssen.