Ryanair has announced plans to freeze employee pay and increase the use of artificial intelligence to manage rising fuel costs. The airline warned that airfares could rise significantly next year if the Middle East conflict continues to drive up oil prices.

Ryanair has already hedged 80% of its fuel needs through March 2027, but the expected €2 billion increase in fuel costs poses a challenge. Temporary pay freezes will apply specifically to workgroups where labor agreements have not already locked in pay rises.

The airline is also planning to increase AI use in back-office functions, which could result in headcount reductions at its Dublin headquarters.

Ryanair is considering lowering cabin crew ratios on some flights, but only within limits set by legal minimum crewing requirements. Despite these challenges, the airline reported a 6% increase in passenger numbers in the first half of 2027, with an average load factor of 95%.

However, average airfares dropped slightly to €55.70, and operating costs rose 10% to €7.69 billion, leading to a 15% drop in profit after tax to €2.15 billion.