Wire reporting: (AFP, via The Local Germany), (AP, via The Philadelphia Inquirer)

Ryanair said Monday that European airfares may rise by double digits in 2027, and that it is reviewing costs including possible temporary pay freezes, after first-half profit fell 15% as jet fuel prices climbed^1,8,10.

Chief executive Michael O'Leary told CNBC that hedges that had insulated customers were rolling off, jet fuel was about $170 a barrel, and fares across Europe could rise by 10%, maybe 20%, next year⁸. In a video with second-quarter results, he also said the industry was looking at double-digit fare increases in 2027¹.

The Dublin-based carrier, Europe's largest by passengers, reported after-tax profit of 2.15 billion euros for the six months to the end of September¹⁰. Revenue rose 3% to 10.08 billion euros and passenger numbers rose 6% to 125.8 million, while average fares fell 4% to 55.70 euros¹⁰. Operating costs rose 10% to 7.69 billion euros⁹.

Ryanair said it expects short-haul fares to rise materially next year but that this is unlikely to offset an estimated 2 billion euro increase in its fuel bill for the year ending March 2028 at current forward prices^9,10. It said 80% of fuel needs through March 2027 remain hedged at about $67 a barrel, while hedges for the following 12 months were raised to 25% at $95 a barrel^8,10.

O'Leary said that unless there is a swift resolution of the Middle East conflict, jet fuel prices are expected to stay elevated well into 2027^1,6,10. The company said it is reviewing labour agreements that could include temporary pay freezes, lower crewing ratios, airport talks and more AI in back-office work^1,8,9. The BBC said it had asked Unite, which represents Ryanair staff, for comment⁶.

Ryanair earlier cut its full-year traffic target to 214 million passengers and said winter traffic from November to March should be roughly flat, after it reduced winter capacity rather than grow on unhedged oil^8,9. O'Leary said it is too early for full-year profit guidance, which remains sensitive to conflict in the Middle East and Ukraine, fuel prices, macroeconomic shocks and European air traffic control strikes^9,10.

Chief financial officer Neil Sorahan said he expected demand to remain strong next year and that an extra 5 or 10 euros on a Ryanair fare would not necessarily reduce people's willingness to travel¹⁰. Shares in Dublin were higher after the results, with CNBC putting the last trade about 3.7% up^8,10.