Ryanair slows hiring as it braces for €2bn fuel hit

Referring to the expected €2bn rise in its fuel bill, O’Leary said in the results statement: “To help address this, we’re reviewing all costs across Group airlines with a particular focus on airport churn negotiations (as the fuel efficient MAX-10s deliver from Spring 2027), maturing labour agreements (which may require temporary pay freezes), lower crewing ratios and increased use of AI to drive further operational and back-office/support functions productivity.”

He separately said pay deals could be frozen at current levels if fuel prices remained high, according to the FT.

Airline’s challenges

Ryanair reported profit after tax of €2.15bn for the six months to 30 September, down 15% from €2.54bn a year earlier. Operating costs rose 10% to €7.69bn as the price of its unhedged jet fuel, which accounts for about 20% of its needs, doubled.

Average fares fell four per cent, which the company partly attributed to consumer hesitancy and later bookings linked to the Middle East conflict. Passenger numbers rose six per cent to 125.8 million.

Labour costs have also climbed. The airline said its fuel hedging this year had helped offset significant crew pay increases under new multi-year collective labour agreements, as well as a €300m rise in EU environmental taxes and higher maintenance costs.