Ryanair weighs cost cuts as fuel bill is forecast to rise

Business · First reported 2 Nov, 06:37 · Updated 08:31

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Ryanair says higher jet-fuel costs could add about €2bn to its bill for the year ending March 2028. The airline is reviewing temporary pay freezes, staffing levels and greater AI use, while expecting short-haul fares to rise materially; it says fare increases may not cover the added expense.

Ryanair forecasts its fuel bill will be about €2bn higher, with fuel prices potentially remaining elevated well into 2027 if the Middle East conflict is not resolved swiftly.
The airline is reviewing temporary pay freezes as labour agreements mature, along with lower crew ratios, airport costs and increased AI use in operational and support functions.
Ryanair expects European short-haul fares to increase materially, but says higher prices are unlikely to fully offset its projected fuel-cost increase.
Ryanair reported 64.5 million passengers in the quarter ending September, up 5% year on year, while post-tax profit fell 6% to €1.61bn for that quarter.
The company said it had hedged 80% of its fuel needs through March at $67 a barrel; it reported 25% hedged at $95 a barrel for the following 12 months.

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Key facts

Forecast fuel-bill increase: About €2bn for the financial year ending March 2028.
Fuel hedging: 80% of requirements through March hedged at $67 a barrel; 25% of the following 12 months hedged at $95 a barrel.
Quarterly passengers: 64.5 million in the quarter ending September, up 5% year on year.
Quarterly post-tax profit: €1.61bn, down 6% year on year.
Half-year profit after tax: €2.15bn, down 15% year on year.