Ryanair has announced a cost-cutting plan to offset high jet fuel prices. The cuts will affect both internal operations and passengers. The measures the Irish low-cost airline plans to implement include higher fares, a temporary wage freeze, fewer cabin crew members per flight, and increased use of AI in back-office operations.
Employees will have a hard time accepting these measures because Ryanair – which has already had a record year – is once again posting billions in profits. Profit after taxes for the first half of the current fiscal year, from April through September 2026, totaled 2,15 billion euros.
High jet fuel prices
Ryanair has already cut part of its winter schedule to reduce the amount of jet fuel it has to purchase without hedging. Still, new, more drastic plans are on the table for a quick solution to the high jet fuel prices resulting from the war in the Middle East, should a quick solution not materialize.
After all, airlines are currently still partially protected against price increases, but those favorable contracts are set to expire before the crucial summer season.
CEO O’Leary also expects European ticket prices to rise by 10 to 20% next year and refers to a “cost cliff”. But even those higher fares will not fully offset fuel costs in the next fiscal year, as those costs could rise by 2 billion euros. That’s because the hedge covering 80% of its fuel at about $67 per barrel is set to expire, while the market price is currently around $140 per barrel.
From temporary wage freezes to increased use of AI
As a result, Ryanair is scrutinizing all costs, and temporary wage freezes, increased use of AI in its administrative processes, and reduced crew sizes on flights are all possibilities – EU rules generally require at least one cabin crew member per 50 installed passenger seats, rounded upwards, or a higher number if aircraft certification requires it.
Ryanair is also reviewing its agreements with airports. This is in line with its practice of pressuring airports to lower costs, and it could determine at which airports the airline will cut or add flights next year.
The airline is also lowering its forecast for passenger growth, which makes sense given the reduced winter schedule: growth is now expected at 3%, bringing the total to 214 million, down from the previously projected 4% increase to 216 million.
Still making billions in profit
For travelers, little will change this winter, precisely because fuel costs are still hedged. Ticket prices were actually 4% lower, as Ryanair was forced to cut them to boost sales amid travelers’ reluctance to book.
In the first half of the current fiscal year, which begins in April, Ryanair carried 125,8 million passengers, an increase of 6%. However, because higher fuel costs and lower fuel prices outweighed the growth in passenger numbers, profit for the first half of this fiscal year declined.
Although revenue rose by 3% to 10,08 billion euros, operating costs soared by 10% to 7,69 billion euros, resulting in a net profit of 2,15 billion euros. That is 15% less than a year ago.
Ryanair, which typically posts a loss between November and March, expects to turn a profit for the current fiscal year as well. However, it will be lower than last fiscal year – a record year with a net profit of over 2 billion euros.
