Ryanair Considers Pay Freeze Amid Projected €2B Annual Fuel Bill Increase

Published Nov 2, 2026, 7:40 AM EST A graduate in German, Jake has a passion for history and regional aviation, and enjoys sampling new carriers and aircraft. He has visited OEM facilities as far and wide as Bristol, Toulouse, and Seattle, and recently enjoyed the milestone of flying his 150th sector as a passenger. Based in Norfolk, UK. Ryanair has announced that it may have to temporarily implement a pay freeze as it comes to terms with concerning long-term fuel prospects. This radical move remains under review for now, and it is one of several angles from which the Irish carrier is looking to tackle its fuel bill in the 2028 financial year. The reason for this is that, with fuel hedges running out, higher fares won't fully offset rising costs. Of course, the budget giant is far from the only European carrier facing such a crisis, with the ongoing geopolitical instability in the Middle East following the US-Israeli attacks on Iran earlier this year continuing to wreak havoc on the global oil market. With that being said, Ryanair does have some reasons to be cheerful in the shorter term, with an increase in traffic projected for the 2027 financial year. Long-Term Fuel Concerns May Prompt Pay Freezes At Ryanair Credit: photosounds | Shutterstock Ryanair made its announcement earlier today as part of a wider report into its financial results from the first half of the year. As always, the airline concluded with an outlook on the future. Here it highlighted the fact that "conflict escalation in the Middle East and Ukraine, the price of our 20% unhedged jet fuel, macroeconomic shocks, and the impact of European ATC disruptions" may impact its 2027 full-year profit. Touching on the first aspect, Ryanair dove into deeper detail, explaining that fuel prices will remain high in 2027 "unless there is a swift resolution of the Middle East conflict." With this in mind, along with the fact that cheaper 'hedged' fuel will run out in 2027, Ryanair expects its 2028 fuel bill to rise by €2 billion ($2.24 billion). Higher fares alone will not fully offset this hike, so Ryanair is considering pay freezes: "To help address this, we’re reviewing all costs across Group airlines with a particular focus on maturing labour agreements, which may require temporary pay freezes." One Of Several Possible Solutions Credit: Ryanair For the avoidance of doubt, a pay freeze would not mean that Ryanair employees would not receive a salary for the period in question. Rather, any potential pay raises based on inflation and/or merit would be put on hold as a way of bridging the financial gap between its higher fuel bill and the extent to which fare hikes would offset this. For now, this is one of several strategies the airline is reviewing. Elsewhere, as Ryanair looks to ease concerns regarding a potentially much higher fuel bill in the 2028 financial year, the airline is also focusing on airport churn negotiations. A key development on this front is the planned start of Boeing 737 MAX 10 deliveries in the spring of 2027. Ryanair may also look to save money by lowering its crewing ratios (the number of pilots and cabin crew vs the size of its fleet). Moving away from the human side of things, Ryanair has also highlighted "increased use of AI to drive further operational and back-office/support functions productivity" as a potential money-saving strategy. However, while there is certainly a use case for such tech in modern commercial aviation, some may fear that it could replace human employees. Only time will tell which course Ryanair will take. A More Positive Short-Term Outlook Credit: InFocus.ee | Shutterstock In the shorter term, Ryanair's fuel prices are protected by hedging, with 80% of its fuel for the 2027 financial year set at $67 per barrel. As such, it can operate with more certainty, at least until the end of March. On this front, the airline has a more positive short-term outlook, with passenger traffic in the 2027 financial year set to rise by 3%. It is also continuing to see strong booking demand in Q3. On this front, the carrier highlights the fact that its "fares [are] trending modestly ahead of the same quarter last year." However, it also notes that passengers are generally booking closer to the time of travel, which limits Ryanair's visibility when it comes to longer-term trends. The carrier concludes that "Q3's fare outcome will heavily depend on the strength of close-in [school holiday] bookings."