Key facts
- Ryanair said it expects jet fuel prices to remain elevated well into 2027 absent a swift resolution of the Middle East conflict.
- Ryanair said its fuel needs through March 2027 are 80% hedged at $67 a barrel.
- Ryanair raised hedges for the following 12 months to 25% at $95 a barrel, from 15% at an average of $85 at the end of June.
- Average fares fell 2% year-on-year in the quarter ended September, Ryanair said.
- Chief Executive Michael O'Leary said airport negotiations, lower crewing ratios and more AI in back-office work could also yield savings.
Ryanair is reviewing all its costs because of higher fuel prices and may require staff to take temporary pay freezes, the Irish low-cost carrier said on Monday, after reporting a 6% decline in net profit for the July-to-September quarter, in line with expectations.
The airline, Europe's largest by passenger numbers, said it expects short-haul airfares to rise materially next year but that this is unlikely to fully offset an estimated €2 billion ($2.24 billion) increase in its fuel bill for the financial year ending in March 2028, based on current forward prices.
"Unless there is a swift resolution of the Middle East conflict, we expect jet fuel prices to remain elevated well into 2027," Chief Executive Michael O'Leary said in a statement. He said negotiations with airports, lower crewing ratios and increased use of AI in back-office operations could also yield cost savings.
Ryanair, one of Europe's best-hedged airlines, said its fuel needs through March 2027 remained 80% hedged at $67 a barrel. It raised its hedges for the following 12 months to 25% at $95 a barrel, compared with 15% at an average of $85 at the end of June.
Average fares fell 2% year-on-year in the quarter ended September and are trending modestly ahead of the same period a year earlier in the current quarter, the company said. Ryanair reported after-tax profit of €1.61 billion for the quarter, when it typically makes most of its profit because of the northern hemisphere summer holiday season. That was in line with a company poll of analysts.
The BBC reported that it had contacted Unite, the union representing Ryanair employees, for comment.