Ryanair considers pay freeze as fuel bill is forecast to rise by €2bn

Ryanair is looking at cutting costs, including a possible temporary freeze on staff pay, as it prepares for a €2bn increase in its fuel bill next year. The airline says higher kerosene prices are expected to push costs up sharply and may keep fares under pressure.

Chief financial officer Neil Sorahan said the company was reviewing its airport agreements and considering whether to reduce the number of crew members on each aircraft. “Everything is on the table, as we call it, whether it’s pay freezes or other things,” he said in an interview after Ryanair published its half-year results.

The airline expects oil prices to remain higher over the next 12 months, Sorahan said. Ryanair’s after-tax profit fell to €2.2bn in the first half of its financial year, from €2.5bn a year earlier.

Ryanair has also said it expects European fares to rise by as much as 20% over the next year as fuel costs climb. Its chief executive previously said fare increases may not fully offset the cost of kerosene.

The BBC reported that Ryanair is considering temporary pay freezes and expects fuel prices to remain high well into 2027 unless the conflict involving the US, Israel and Iran is swiftly resolved. It said Ryanair had contacted Unite, the union representing its employees, for comment.