Low-cost airline Ryanair has announced that it is considering a temporary freeze on employee wages. It also indicated that flight prices could be significantly higher next summer, given the rise in fuel costs driven by the conflict involving Iran, reports the BBC.The airline stated that it expects fuel prices to remain at current levels through 2027, unless the conflict is resolved quickly. Ryanair noted that its short-term fuel costs are projected to be two billion euros higher; company CEO Michael O’Leary stated that flight prices would need to rise by a double-digit percentage to cover these expenses. However, this may not be sufficient, and a temporary freeze on wages is also being considered.According to Ryanair, the company’s pre-tax profit for the six months ending in late September fell by 16% to 2.4 billion euros, largely due to a 15% increase in fuel prices. Although 80% of its fuel supply contracts were secured at fixed prices before the surge, the remaining fuel proved significantly more expensive. O’Leary reiterated previous forecasts that the company would need to raise ticket prices by 20% to cover fuel costs. He stated that while he was not certain about such a large price increase, it would definitely be a double-digit figure; furthermore, tickets would also become more expensive across other European airlines.Aviation fuel prices rose after the US and Israel launched a war against Iran. Iran closed the Strait of Hormuz, leading to a dramatic drop in the export of oil products from Persian Gulf states, while demand for oil sourced from elsewhere in the world increased.
Ryanair considers freezing employee wages and raising ticket prices
