Ryanair Mulls Pay Freeze Amid Fuel Costs
Ryanair's chief executive says the airline is prepared to freeze workers' pay as fuel costs and new taxes squeeze profits.
Updated on Nov. 3, 2026 in Budget Travel
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Ryanair recorded a 15 per cent drop in profits between April and September, and CEO Michael O'Leary said the airline is prepared to freeze workers' pay. Rising fuel costs linked to the Iran war, along with a UK tourist tax and higher air passenger duty, are cited as the pressures behind the move.
Why it matters
Workers across the UK, Spain, Portugal and Ireland would be forced to bear part of the fuel bill, while travelers could face higher fares. The continued closure of the Strait of Hormuz is driving the fuel price increases at the center of the dispute.
The figures cited are a 15 per cent drop in Ryanair profits between April and September and unhedged oil at $150 a barrel, compared with the prior period. It remains unclear whether the proposed pay freeze will be implemented or how far fares will rise.
The players
Michael O'Leary
Michael O'Leary is the chief executive of Ryanair, Europe's largest low-cost airline, and has been a prominent and outspoken figure in the aviation industry for decades.
Ryanair
Ryanair is a low-cost airline headquartered in Ireland and is one of the largest carriers in Europe by passenger volume.
The details
Ryanair CEO Michael O'Leary said the airline is prepared to freeze workers' pay in response to rising fuel costs, a UK tourist tax and higher air passenger duty. The airline has also flagged that pilot strike action costs it approximately £1,000 per pilot per day, and that potential strike action could ultimately save money.
Timeline
April to September 2026: Ryanair profits fell 15 per cent.
November 2026: Pay freeze announced and the Labour Budget criticized.
March or April 2027: The Strait of Hormuz closure could cause a real crisis.
Market Landscape
The Strait of Hormuz closure has pushed fuel costs up across the aviation sector, forcing low-cost carriers to choose between passing costs to fares and squeezing labor. Ryanair's stance places it at the center of a broader cost-pressure contest among European airlines.
Travelers booking flights should be aware that air fares could rise by as much as 20 per cent if fuel costs stay high. Booking earlier may help lock in current prices before any increases take effect.
The takeaway
Rising fuel costs are reshaping airline pricing and labor decisions across Europe, so travelers planning trips should factor in the possibility of higher fares and watch for further announcements from carriers.
What happens next
The Strait of Hormuz closure is projected to cause a real crisis by March or April 2027, a date by which fare and cost pressures could intensify.
Further reading
For more on how fuel shocks affect ticket prices, see Budget Travel.
Source note: This article includes information reported by GB News.
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