Goodbye cheap flights? Ryanair is tightening its belt

Rising jet fuel prices increase carrier costs; this year they may exceed 30%. airline expenses, and the total fuel bill may increase by approximately USD 100 billion compared to 2025 - reported IATA (International Air Transport Association).

According to the latest IATA forecast in June, the costs of aviation fuel for carriers will increase by nearly 40%. - from USD 252 billion in 2025 to USD 350 billion in 2026. This forecast is based on the assumption that the average price of Brent oil this year will be USD 95 per barrel (37% increase compared to USD 69 in 2025).

Ryanair announced today that its fuel bill is expected to increase by EUR 2 billion. Michael O'Leary, the company's Irish boss, today repeated forecasts from the beginning of the year that Ryanair "will need a 20% increase in ticket prices" to cover these costs.

“I'm not sure we'll get to 20%, but we certainly expect double-digit ticket price increases across all airlines across Europe in 2027,” Michael O'Leary said.

However, Ryanair's authorities fear that this will not be enough and are considering freezing the wages of their employees.

The Unite trade union, which represents Ryanair workers, said it had not been informed of "any such proposals", the BBC reports.

Oliver Richardson, a representative of Unite, said that "the union has a multi-year pay agreement that covers next year - many unions in Europe have a similar arrangement."

"Our pay agreement was not related to or dependent on the company's performance. Ryanair tried to emphasize this. We therefore expect the agreement to be respected," added the trade unionist.

O'Leary also said the company would reduce recruiting due to increased operating costs. The company will also increase the use of artificial intelligence in back-office and support departments.

O'Leary concluded: "We believe cuts will continue into the summer of 2027. In the medium term, we expect short-haul capacity to remain constrained into the early 2030s."

Financial results published by the Irish carrier on Monday show that pre-tax profit fell by 16%. to EUR 2.4 billion in six months (until the end of September), mainly due to a 15% increase in fuel costs.

The company reported that at least 80 percent the fuel bill was "hedged" (in effect purchased in advance at fixed prices) the cost of the remainder was increased.

Jet fuel prices have soared this year as the U.S. and Israel's war on Iran has dramatically reduced the supply of refined products from the Persian Gulf and increased competition for those produced elsewhere.