Ryanair could bring in pay freezes and other staffing savings, including more use of artificial intelligence in support and back-office work, according to its chief executive. Michael O'Leary told the Daily Business that the airline is bracing for a €2bn rise in fuel costs in its next financial year, and that ticket prices alone might not plug the gap.

Key points

  • Profits down — first-half earnings fell 15% to €2.15 billion, from €2.54bn a year earlier.
  • Fuel pressure — the carrier expects a €2bn increase in fuel bills next financial year.
  • Fares weaker — revenue rose 3%, but average fares dropped 4% to €57.50.

Over the six months to the end of September, costs climbed by a tenth, said to be partly down to the price of the 20% of fuel the company has not hedged. Ryanair has fixed the cost of 80% of its fuel at $67 a barrel until 31 March.

"Unless there is a swift resolution of the Middle East conflict, we expect jet-fuel prices to remain elevated well into 2027," O'Leary said.

Separately, Edinburgh Worldwide Investment Trust has taken on Paul Fincham and Nick Stewart as independent non-executive directors. The pair, who meet the Association of Investment Companies' independence code, will sit on the audit and management engagement committee and the nomination committee. Fincham has a background in corporate finance and in launching and restructuring closed-ended funds, while Stewart has spent over 25 years advising on governance, risk management and capital allocation in financial services.

Editor's comment

What it means in practice

For anyone booking flights this winter, the message is to watch fares rather than assume they will fall: if fuel stays expensive, some of the pressure is likely to reach ticket prices, and Ryanair is also looking at holding down staff costs. Travellers can lock in prices early where possible, and anyone with savings in investment trusts may want to note the new board appointments at Edinburgh Worldwide.

  • Book ahead — cheap seats may not last if fuel costs keep climbing.
  • Check your fund — Edinburgh Worldwide investors will see two new independent directors join the board.