The Guardian
02 Nov 2026, 09:06 UTC · 1h ago
Ryanair considers pay freezes and reducing crew on flights as fuel costs soar
Impact · against what's priced in
Ryanair faces a significant earnings headwind as projected fuel costs are expected to rise by €2bn for FY2028, a cost that CEO Michael O'Leary explicitly states is unlikely to be fully offset by ticket price increases. The company is pivoting toward aggressive cost-cutting, including potential pay freezes and crew reductions, to protect margins against minimal hedge protection (25% at $95/bbl) relative to current $110/bbl spot prices.
- RYAAY−0.50
No priced-in read yet
- In context
The forecast of a €2bn increase in fuel costs for FY2028 creates a direct threat to EPS, as the company admits that projected ticket price hikes of up to 20% will not provide a full offset. Current hedging is inadequate, covering only 25% of requirements at $95/bbl while spot prices have reached $110/bbl.
