Ryanair Raises Fares as Jet Fuel Costs Soar

Ryanair will launch a major cost-cutting initiative and raise ticket prices next year to counter soaring jet fuel costs triggered by the war in the Middle East.

Chief Executive Michael O’Leary expects the airline’s fuel bill to jump by €2.0 billion ($2.24 billion) in its next financial year.

To offset this financial hit, the budget carrier is planning measures such as temporary pay freezes, lower cabin crew ratios, and expanded use of artificial intelligence in back-office operations.

The carrier reported a six per cent decline in second-quarter net profit, dropping to €1.61 billion despite a four per cent revenue increase to €5.7 billion.

Although passenger traffic grew by five per cent, ticket fares dropped two per cent as regional conflicts created consumer uncertainty and delayed bookings.

While hedging contracts protected 80 per cent of Ryanair’s current fuel needs, unhedged fuel costs have spiked sharply, leading management to warn that European travellers face double-digit percentage fare increases next year.

Organised labour responded quickly to the airline’s proposed austerity measures.

The British union Unite emphasised that existing multi-year agreements secure member pay through 2027 regardless of corporate earnings, expecting Ryanair to honour these contracts.

Analysts at AJ Bell confirmed that expired fuel hedges will force the wider airline industry to confront severe cost pressure, making higher ticket prices inevitable unless global oil markets cool.