High Leverage & Negative EquityPersistently elevated debt and an equity deficit materially weaken financial flexibility. Even with improved earnings, negative equity and high leverage constrain strategic options, increase refinancing and covenant risk, and heighten vulnerability to macro shocks over the medium term.
Thin And Volatile Free Cash FlowLow and falling free cash flow limits capacity to reduce debt, absorb shocks or fund capex without external financing. Weak FCF conversion versus net income indicates working‑capital swings and capex intensity, undermining durable cash cushion despite operating cash improvements.
Structural Regional & Operational HeadwindsSustained airport tariff rises, Transavia transition losses and cargo volatility impose recurring cost and revenue pressures that are not one‑off. These regional and operational factors compress margins, complicate execution of unit‑cost targets and make earnings more sensitive to external shocks.