# Ryanair Faces Union Clash Over Pay Freezes Amid Rising Fuel Costs Airline targets AI integration and labor cost reductions to offset massive fuel bill increases. - **Source:** [Business | The Guardian](https://www.theguardian.com/uk/business) - **Published:** 2026-11-02 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/63159390-744a-4b44-b6e2-68ffeccfc5a3 ## Rising Fuel Costs Impact Ryanair anticipates a two billion euro increase in its annual fuel bill by March 2028. CEO Michael O'Leary expects jet fuel prices to remain elevated due to the ongoing Middle East conflict. Consequently, the airline warns that European short-haul ticket prices could rise by up to twenty percent next year. ## Proposed Cost-Cutting Measures To mitigate financial pressure, the airline is reviewing all group costs, including airport churn negotiations and crew ratios. Management is considering temporary pay freezes for staff as existing labor agreements come up for renegotiation. Additionally, the company plans to slow down hiring for pilots and cabin crew across its training programs. ## Union Conflict and Resistance The Unite union has challenged the proposed pay freezes, citing existing multiyear agreements that remain in effect through 2027. Union official Oliver Richardson emphasized that these contracts are independent of company performance metrics. The union expects Ryanair to honor these legally binding agreements despite the airline's current financial challenges and fuel costs. ## AI for Operational Efficiency Ryanair is expanding its use of artificial intelligence to improve productivity in back-office and support functions. The airline already utilized AI to increase capacity by four percent. O'Leary noted that managing a fleet of 650 aircraft requires machine-led scheduling, as these systems outperform human capabilities in optimizing complex flight routes. ## Fuel Hedging Strategy Challenges Eighty percent of fuel requirements are currently hedged at sixty-seven dollars per barrel until March. However, only twenty-five percent of needs for the following twelve months are hedged at ninety-five dollars per barrel. O'Leary admitted the industry is generally under-hedged, leaving carriers vulnerable to sustained high oil prices throughout 2027. ## Fleet Modernization and Delivery The airline is adjusting its fleet expansion strategy, reducing annual aircraft deliveries from thirty to fifteen. In January, Ryanair expects to receive Boeing 737 Max 10 aircraft. These new planes offer twenty percent more seating capacity while burning twenty percent less fuel, serving as a critical component in long-term cost reduction efforts. ## Recent Financial Performance Ryanair reported a post-tax profit of 1.61 billion euros for the quarter ending in September, representing a six percent year-on-year decline. Despite this, passenger numbers grew by five percent to 64.5 million. Average fares fell by two percent during the same period, reflecting a highly competitive and volatile pricing environment. ## Market Outlook and Visibility The booking window remains short, reducing visibility for future revenue projections. Final quarterly fare outcomes depend heavily on the strength of October, November, and Christmas holiday demand. As fuel hedging deals expire, the airline faces significant pressure to balance rising operational expenses with the need to maintain competitive market pricing. ## Sources covering this story - https://www.theguardian.com/business/2026/nov/02/ryanair-considers-pay-freezes-reducing-crew-on-flights-fuel-costs-soar-ai — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._