Ryanair is considering cost-cutting measures including implementing pay freezes, reducing crew on flights and increasing the use of AI to offset soaring fuel costs because of the Middle East conflict. Europe’s biggest low-cost carrier said it expects European airlines to raise their ticket prices by as much as 20%, as it anticipates its jet fuel costs will increase by about €2bn (£1.6bn) in its next financial year, which ends in March 2028. Ryanair said it expects European short-haul fares will “increase materially” next year as a result, as the oil hedging deals taken out by airlines to reduce costs come to an end.
The company said the AI drive would be focused on “further operational and back office/support functions” productivity. Ryanair said its fuel requirements through to the end of March remain 80% hedged at $67 a barrel. The company’s hedges for the following 12 months are 25% hedged at $95 a barrel.
The Irish airline, Europe’s largest in terms of passenger numbers, said that average fares fell by 2% year on year in the quarter to the end of September. Ryanair added that fare prices in the final three months of the year were trending “modestly ahead” of the same quarter last year. Passenger numbers grew 5% year on year to 64.5 million for the quarter.
Extract — continue reading at the source.
