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Ryanair flags double-digit fare rises for 2027
BBC News·
Ryanair said airfares will be "materially higher" next summer after fuel costs rose in the US-Israel war with Iran. Chief executive Michael O'Leary said the fuel bill is forecast about €2bn higher short term. Pre-tax profits fell 16 percent to €2.4bn in the six months to end-September. The airline is considering temporary pay freezes from April and slowing hiring.
Prism
What It Means For You
- O'Leary said carriers across Europe are looking at double-digit fare increases in 2027.
- He said a 20 percent fare rise may be needed for jet fuel, though he was unsure they would reach 20 percent.
- Unite said it had not been told of pay-freeze proposals and has a multi-year deal covering next year.
What's Happening
- Fuel costs jumped 15 percent in the half-year period cited by the airline.
- Ryanair said 80 percent of its fuel bill was hedged at fixed prices.
- It expects high fuel prices to persist well into 2027 without a swift conflict resolution.
Why jet fuel jumped
- The company linked the surge to reduced refined-product supply from the Gulf.
- Competition for fuel produced elsewhere then intensified, it said.
- Pay freezes are being weighed as multi-year labour agreements mature.
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