High Financial LeverageA high debt-to-equity ratio increases interest burden and refinancing sensitivity, limiting financial flexibility. Over the medium term elevated leverage can constrain capital allocation, raise cost of capital, and amplify downside if demand weakens or interest rates rise, making balance sheet a structural risk.
Volatile Earnings And Margin StabilityA sharp EPS decline and ongoing net margin volatility indicate earnings are still sensitive to cost and revenue swings. Structural volatility reduces predictability of free cash flow and complicates long-term planning, making profitability less reliable across economic cycles and seasonal demand shifts.
Exposure To Fuel, FX And Other Cost DriversKey input and operating costs (jet fuel, leases, FX, airport charges) materially affect unit economics. These external cost exposures are structural for airlines and can erode margins unpredictably, limiting durable margin improvement unless hedging or pricing power is enhanced over the medium term.