Ryanair considers pay freeze + Edinburgh trust hires – Daily Business

Ryanair is facing soaring costs

Ryanair chief executive Michael O’Leary has warned that higher fares may not be enough to offset high fuel prices sparked by the US-Iran war.

Soaring costs over the first half to the end of September saw profits at the Irish airline fall 15% to €2.15 billion, from €2.54bn during the same period last year.

Ryanair is facing a projected €2bn increase in fuel bills in its next financial year and may have to impose pay freezes and other labour-related cuts, including increased use of artificial intelligence in back-office and support, said Mr O’Leary.

“Unless there is a swift resolution of the Middle East conflict, we expect jet-fuel prices to remain elevated well into 2027,” he said.

Ryanair has hedged 80 per cent of its fuel at $67 a-barrel up to 31 March, but a doubling in the cost of the unhedged 20%contributed to a 10% increase in costs over the six months to 30 September.

Revenue rose 3% during the six month period, but average fares fell by 4% to €57.50.

EWIT hires directors

Edinburgh Worldwide Investment Trust has appointed Paul Fincham and Nick Stewart as independent non-executive directors.

Both are independent under the Association of Investment Companies’ code and will join the audit and management engagement committee as well as the nomination committee.

Mr Fincham brings corporate finance and closed-ended fund launch/reconstruction experience and Mr Stewart brings more than 25 years in financial services, governance, risk management and capital-allocation advisory.

The trust is now controlled by New York hedge fund Saba Capital Management. The vote in April saw chairman Jonathan Simpson-Dent, Mary Gunn, Jane McCracken, Caroline Roxburgh and Gregory Eckersley voted out of the Baillie Gifford-managed company, while a sixth director, Mungo Wilson, retiried.

First Group bus sale

FirstGroup has raised £109 million after selling five bus depots and a fleet of 251 diesel vehicles and 79 electric vehicles to the West Yorkshire Combined Authority.

The depot sales have completed, and the fleet sales will occur as the three WYCA franchise tranches go live, currently planned for May 2027, January and October 2028.

First Bus will continue to run existing commercial bus routes up to the date of the franchise commencement at the respective depots, with the depots being leased to the Group at a peppercorn rental rate.

The group anticipates a post-tax disposal gain of circa £30m in relation to the completed depot sales that will be treated as an adjusting item for the purposes of the Group’s FY 2027 adjusted operating profit and adjusted earnings per share, and cash inflows of c.£55m in FY 2027.

The balance of the cash flows relating to the fleet sales will result in further positive adjusting items in FY 2028 and FY 2029, with the final number of fleet sales and sale proceeds depending on the extent that the Group is awarded contracts under the second and third tranches.

Following the transition of the five depots to franchising c.130 buses will be cascaded to other parts of the Group.

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