Ryanair is exploring a suite of cost-saving actions after forecasting a sharp increase in jet fuel expenses. The measures under review include temporary salary holds, trimming the number of crew members assigned to each flight, and expanding the deployment of artificial-intelligence tools to offset the financial strain caused by higher fuel prices linked to conflict in the Middle East.
The carrier expects its own fuel bill to climb by roughly €2 billion, or about £1.6 billion, in the financial year that ends in March 2028. To mitigate exposure, 80 percent of its fuel requirements through the end of March have been locked in at $67 per barrel, while only a quarter of the subsequent twelve-month demand is hedged at $95 per barrel.
Ryanair predicts that short-haul fares across Europe will rise substantially next year, a trend it attributes to the expiration of existing fuel-hedging contracts. Industry analysts anticipate that European airlines could lift ticket prices by as much as 20 percent, a shift that may erode the price advantage that low-cost carriers traditionally enjoy.
The airline says the expanded use of AI will target productivity gains in both flight operations and back-office support functions. By automating routine tasks and optimizing scheduling, Ryanair hopes to offset some of the cost pressure without compromising service levels, according to statements from its chief executive.
In the most recent quarter ending in September, Ryanair posted a post-tax profit of €1.61 billion, a 6 percent decline from the same period a year earlier but still within analyst expectations. Passenger traffic grew 5 percent year-on-year to 64.5 million, while average fares slipped 2 percent, although fare levels in the final quarter of the year were modestly ahead of the previous year’s comparable period.
Oil markets have been volatile, with prices reaching a six-month peak before settling around $110 a barrel. The surge has been driven largely by geopolitical tensions in the Middle East, intensifying the cost challenges faced by airlines that rely heavily on jet fuel for their operations.