Ryanair says it may freeze staff pay and raise airfares next summer because of higher fuel costs linked to the US-Israel war with Iran.
The airline confirmed that fares will be "materially higher" in summer 2027. It expects fuel prices to stay high "well into 2027" unless there is a "swift resolution" to the conflict. Its fuel bill is forecast to be €2bn (£1.6bn) higher in the short term.
Chief executive Michael O'Leary said airfares would need to rise by "double-digits" to help cover the cost. He said the company is "not sure" it will reach the 20% increase he had earlier forecast. "But we're certainly looking at double-digit fare increases across Europe from all airlines in 2027," he said.
Ryanair is also considering temporary pay freezes for staff as multi-year wage deals with unions end. The policy could start in April 2027. Unite, the union that represents Ryanair staff, has been contacted for comment.
The airline said pre-tax profits fell 16% to €2.4bn in the six months to the end of September, largely because fuel costs rose 15%. It said 80% of its fuel bill was hedged, meaning bought in advance at fixed prices, but the remaining 20% has become more expensive.
Ryanair also said it will expand its use of artificial intelligence in back-office and support functions. It has cut winter flights and said further cuts will continue into summer 2027. O'Leary said short-haul capacity will likely stay constrained into the early 2030s.