# Ryanair Considers Wage Freezes Amid Rising Jet Fuel Costs Rising fuel prices threaten profitability as airline evaluates cost-cutting measures and ticket hikes. - **Source:** [Rzeczpospolita](https://www.rp.pl) - **Published:** 2026-11-12 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/e5577be3-a254-49d3-9338-7d58052f37a7 ## Rising Fuel Costs Impact Ryanair is reviewing its entire cost structure due to surging jet fuel prices. The airline reported a 6 percent decline in net profit to 1.61 billion euros for the quarter ending in September. Management warns that expected ticket price increases may fail to fully offset the projected 2 billion euro fuel bill hike. ## Potential Wage Freezes To mitigate financial pressure, the airline is considering a wage freeze for employees as part of a broader austerity program. This initiative is one of several cost-saving measures currently under review. The company is also negotiating airport fees and optimizing crew staffing levels to protect margins against rising operational expenditure requirements. ## Geopolitical Fuel Risks CEO Michael O’Leary attributes the sustained high fuel costs to ongoing conflicts in the Middle East. He expects these prices to remain elevated until at least 2027 if the regional situation does not stabilize. These external factors significantly complicate the airline's long-term financial planning and its ability to maintain current ticket pricing structures. ## Hedging Strategy Updates Ryanair remains one of Europe's best-hedged airlines against fuel volatility. Currently, 80 percent of its kerosene needs are secured until March 2027 at 67 dollars per barrel. Recently, the company increased its 12-month hedging coverage to 25 percent at 95 dollars per barrel, up from an initial 15 percent at 85 dollars. ## Ticket Pricing Outlook Michael O’Leary anticipates double-digit ticket price increases across European airlines next year. However, he remains uncertain if a 20 percent hike is feasible to cover the 33 percent rise in fuel costs. CFO Neil Sorahan suggests that a modest increase of 5 to 10 euros might not deter current passenger travel demand. ## Operational Efficiency Gains Beyond wage adjustments, Ryanair is leveraging artificial intelligence to streamline office operations and administrative tasks. The company is also actively renegotiating contracts with various airports to reduce operational overhead. These internal efficiency measures are critical components of the airline's strategy to navigate the current period of high fuel-driven financial volatility. ## Passenger Demand Trends Despite cost pressures, passenger demand remains resilient. Ticket prices in the third quarter were slightly higher than the previous year, following a 2 percent decline observed in the period ending in September. Travelers continue to book flights close to their departure dates, making future revenue levels dependent on late-stage holiday season bookings. ## Market and Future Outlook The airline's stock rose 2 percent following the release of these financial results and outlook. Management is monitoring US political events and potential peace talks in the Middle East as indicators for future fuel hedging decisions. The company remains committed to its long-term growth targets while managing short-term fiscal constraints. ## Sources covering this story - https://turystyka.rp.pl/linie-lotnicze/art45477211-ryanair-rozwaza-zamrozenie-plac-podwyzki-cen-biletow-moga-nie-pokryc-kosztow-paliwa — --- _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._