Budget airline Ryanair is reportedly considering a temporary wage freeze for its staff and has confirmed that airfares will be significantly higher next summer. The development comes as the carrier faces skyrocketing fuel costs driven by the ongoing conflict involving the US-Israeli alliance and Iran.

The airline stated that fuel prices are projected to remain elevated well into 2027 unless a swift resolution to the geopolitical crisis is achieved. Ryanair CEO Michael O'Leary allegedly claimed that airfares would need to rise by double digits to help cover an estimated €2bn increase in short-term fuel bills, though he conceded this might still fall short of addressing the deficit.

According to corporate disclosures, pre-tax profits dropped by 16% to €2.4bn during the six months leading up to September, largely pressured by a 15% jump in fuel expenses. In response to these mounting pressures, the European transport giant intends to slow down hiring, expand the use of artificial intelligence in back-office operations, and implement potential pay freezes as multi-year union agreements expire.

Industry analysts point out that the broader European aviation sector is experiencing severe capacity constraints that could persist into the early 2030s. As short-haul carriers continue cutting winter and summer flight schedules, passengers across the continent are expected to bear the economic brunt of these compounding geopolitical and structural failures.

Source: www.bbc.co.uk