Ryanair said it could impose a pay freeze for staff and raise ticket prices if a projected jump in jet fuel costs materialises.
The carrier told investors and employees that fuel expenses might increase by roughly €2bn in 2028 unless there is an end to what it described as the "US-Israel war with Iran," a scenario the company says would push up operational costs significantly.
Background
Airlines are highly sensitive to changes in fuel prices, which represent a large share of operating costs. Ryanair framed the warning as a contingency measure to protect its financial position if the geopolitical situation drives sustained fuel price inflation.
Potential measures and impacts
Ryanair said the steps it might take include freezing staff pay and passing a portion of higher costs on to customers through increased fares. The company presented the possibility as part of its planning for a range of outcomes, noting that rising fuel bills would force management to consider cost-mitigation options.
The warning will be watched closely by employees, unions and regulators, as well as passengers who could face higher fares if the company follows through on its proposals. It also underscores the vulnerability of the aviation sector to geopolitical developments that affect oil and gas markets.
Ryanair did not provide a detailed timetable for any changes, saying decisions would depend on how the fuel-price outlook evolves. The company said it would continue to monitor market conditions and adjust its response as events unfold.