Ryanair resorts to AI cost-cutting to swallow higher jet fuel costs

Ryanair is set to use AI to improve productivity and freeze the pay of some of its staff in a bid to cut costs ahead of rising energy costs. Michael O’Leary, chief executive of the budget airline, said the energy costs facing European airlines will be “significantly higher next year,” because many of their fixed-price contracts for jet fuel will run out. Carriers have been grappling with higher jet fuel prices since the beginning of the Iran war in February, and the airline boss said he expects costs to “remain elevated well into” next year. O’Leary had already warned of significantly higher air fares next year, but O’Leary cautioned that Ryanair will need to reduce spend to offset €2bn in higher costs. He said: “To help address this, we’re reviewing all costs across group airlines with a particular focus on airport churn negotiations [ ] maturing labour agreements (which may require temporary pay freezes), lower crewing ratios and increased use of AI to drive further ope